AmCapital Gajah Tunggal (GJTL, Rp990) Sales volume growth targeted at 10-12%, divestment of Polychem shares

Gajah Tunggal, Indonesia’s largest tires producer, estimated its FY10 sales volume to grow by 10-12% on the back of increase in its offtake agreement with France-based Michelin from 2mn tires to 3mn tires. The company is targeting its sales volume to reach 31.25mn tires from 27.9mn tires last year. Gajah Tunggal also plans to sell its 28.91% stake in Polychem Indonesia, Catharina Widjaja, a Director at Gajah Tunggal.