JOHOR-BASED Nitro group is expanding its motorcycles assembly activities by venturing into tyre manufacturing.
Nitro vice-chairman and director Chen Kim Hock said the tyre-making facilities would be part of the company's new RM85mil assembly plant.
He said the 600,000 sq ft plant on a 24.28ha site along the Pasir Gudang Highway would start rolling out motorcycles in the first quarter of next year.
Chen said the tyre-making section would take up about 23,400 sq ft of the plant and would be producing 60,000 tyres monthly.
He said the company had recently acquired one of Malaysia's leading manufacturers of tyres for motorcycles, scooters and bicycles for several million ringgit.
“The acquisition will help to position the company as one of the key players in motorcycle assembly in Malaysia and the region,'' Chen told StarBiz at the launch of Nitro-Kymco scooters by the Ayer Hitam Member of Parliament Dr Wee Ka Siong on Friday last week.
At the event, the company also launched 100% loan financing from Bank Simpanan Nasional for government and quasi-government civil servants who purchase Nitro motorcycles.
Chen said the company was targeting to capture at least 50% of the 800,000 government servants nationwide who have the potential to become buyers.
He said for now, the tyres making activities would still be in Kuala Lumpur before it moved the production line to the new plant in 2006.
“Initially, the tyres will be used for our motorcycles and scooters, and we'll later sell them to other motorcycle makers and in the export markets,'' Chen said.
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