GM to Reopen Factory in Indonesia

Automaker's $150 million investment 'is one of the most significant undertakings we have made in the region.'

General Motors said it will spend $150 million to reopen its Bekasi manufacturing facility in West Java, Indonesia.

The reactivation of the plant will create more than 800 new jobs, the automaker noted.

GM, which derives the majority of its revenues from sales outside the United States, expects to start producing a new line of people movers for Southeast Asia in 2013.

The 11-hectare plant will initially manufacture up to 40,000 vehicles per year, according to GM.

GM said it will install new equipment in the plant, and implement its Global Manufacturing System, GM's standardized operating platform.

Further details about the product such as its nameplate, design specifications and pricing will be announced at a later date.

Along with GM Thailand's Rayong facility and GM Vietnam's Hanoi plant, the Bekasi factory will play an important role in the automaker's growth strategy in Southeast Asia.

The Bekasi plant "will leverage the local supply base while spurring the expansion of GM's local dealer network," the automaker said in a news release.

"This is one of the most significant undertakings we have made in the region," said Martin Apfel, president of GM Southeast Asia.

Last year, GM's sales in Indonesia rose 72% to 4,500 units. In the first half of 2011, sales were up another 18% on an annual basis to 2,500 units, according to the automaker.

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