Indonesian rolling stock manufacturer PT Inka and Stadler signed a joint venture contract to develop and manufacture rail vehicles using modern aluminium technology at the production site in Banyuwangi, in East Java province. The production is scheduled to start in 2021.
Under the contract, an order has to be received for 500 suburban rail carriages with an option for a further 500 carriages. In addition, Stadler will implement the technology transfer and start training the Indonesian employees.
The agreement marks a historic milestone for Stadler, entering Asian market.
“Following several failed attempts to successfully enter the Asian market from Europe, we realized that this was not possible without a production site on the spot. We therefore decided to look for a suitable local partner, and have finally managed to find one after more than ten years of searching. This has enabled us to make the leap to Asia,” Peter Spuhler, Chairman of Stadler’s Board of Directors, said.
Since January 2019, PT Inka started building the necessary production facility in Banyuwangi.
As well as manufacturing car bodies, the new plant will also carry out pre-assembly, final assembly and commissioning of rail vehicles.
The new location should also represent the long-sought-after base from which to gain access to South East Asian countries.
For Stadler, the establishment of a production site is a strategically important step which will contribute to the success of the entire group.