CORPORATE ACTION - JAKARTA. Airplane maintenance company PT Garuda Maintenance Facility (GMF) Aero Asia is planning to diversifying its business line by manufacturing airplane tires, with the factory expected to be constructed in the first quarter of 2019.
“We are now completing the agreements. Hopefully, the factory's groundbreaking ceremony will take place in the first quarter,” said GMF Aero Asia president director Iwan Joenirto in Jakarta on Wednesday, adding that the factory would be constructed on a 35-hectare plot of land.
But Iwan did not disclose the location of the planned factory. “The land is owned by the Group. The location is being considered. But for sure, it is in Java,” he said, but he also could not reveal the value of investment for the project.
Regarding the source of funding for the project, he said that GMF Aero Asia, a subsidiary of national carrier Garuda Indonesia, would find finances from both domestic and international sources.
Recently, GMF Aero Asia said it had got a commitment of US$500 million from a Chinese investor to finance several projects.
“It is possible that the funds come from China, but it could also come from banks. We have not made a decision. We are still conducting an evaluation,” he added.
As for its partner to produce airplane tires, GMF Aero Asia is considering two main options—either a tire manufacturer from Europe or from the United States.
