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Selamat Sempurna, an auto parts manufacturer, and Tokyo Radiator of Japan have agreed to set up a joint venture in Jakarta to make radiators for cars.

The joint venture will produce and trade heat exchange products, Ang Andri Pribadi, a director at Selamat Sempurna, said in a filing to the Indonesia Stock Exchange (IDX) on Friday.

Tokyo Radiator will control 67 percent of the joint venture, which will produce and trade heat exchange products, while Selamat Sempurna will own the remaining stake.

The partnership will set up a manufacturing plant in Tangerang, Andri said.

“The joint venture agreement shows that foreign investors have confidence in the company,’’ Andri said.

Selamat Sempurna produces various automotive components under brands including ADR Radiator, Sakura Filter, Donaldson Filter, Acap Filter.

The partnership will be called Tokyo Radiator Selamat Sempurna, according to Helo Jepang digital news. The construction of the plant is expected to start in April at a total cost of Rp 24.7 billion ($2.8 million).

Selamat Sempurna has partnered with Tokyo Radiator previously. It set up a venture in 1994 to produce radiators and in 2008, it also set joint alliance to produce intercooler machines, Helo Jepang reported.

Tokyo Radiator Manufacturing is a Fujisawashi, Japan-based company that produces automotive radiators.

Selamat Sempurna has production centers in North Jakarta and in Tangerang. The North Jakarta production site spreads over five hectares of land. The company’s production site in Tangerang is located on 75 hectares of land, the company said on its Web site.

Shares in Selamat Sempurna rose 3 percent to Rp 1,570 on the IDX in Friday trading.

Investor Daily