By Reuters – published by CNA and Jakarta Post
Tokyo – Japanese truck maker Isuzu Motors today (June 8) said it was not planning to move a factory from Thailand to Indonesia, a day after the Indonesian industry minister said the company would do so.
“While our company continues to focus on Indonesia as a major market, there are no plans to relocate a Thai factory to Indonesia,” an Isuzu spokesperson said.
The company had made no announcement on the issue, the spokesperson added.
Indonesian Industry Minister Agus Gumiwang Kartasasmita had said yesterday that Isuzu planned to move the factory and could start production as early as next year.
A ministry spokesperson today did not immediately respond to a request for comment on the denial from Isuzu, which already has a factory in Karawang, Indonesia.
Shares of some Thai auto parts companies sold off today after reports of the comment from the Indonesian industry minister.
Isuzu began building trucks in Thailand 60 years ago.
According to the Indonesian Industry Ministry the relocated factory will produce UD Trucks, previously owned by Volvo and acquired by Isuzu in 2019, Jakarta Post said today.
“We would like to express our appreciation for Isuzu’s decision and hope that the relocation of the production base will go well. We will prepare various facilities, including incentives, to support the factory relocation process,” said Agus in a statement.
The logo of Isuzu is seen during the 87th International Motor Show at Palexpo in Geneva, Switzerland on March 8, 2017. File photo /Arnd Wiegmann and published by CNA