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Indonesia's Multistrada plans to boost production capacity to 11 mln tyres next year

JAKARTA, Oct 7 - PT Multistrada Arah Sarana Tbk, Indonesia's second-biggest tyre maker by market value, said it plans to boost its annual production capacity to 11 million tyres next year.

"To increase our production capacity, we need to fix the bottlenecks first," Multistrada Chief Executive Peter Tanuri said on Monday after the company signed a $170 million eight-year loan agreement with OCBC NISP.

Multistrada currently has a production capacity of 10 million tyres, up 20 percent from previous year. The company expects to benefit from the government's low-cost green car programme to promote small cars.

Tanuri also said the company was seeking a strategic partner to develop its plantations, and was in talks with investors from Europe, Malaysia and Japan.

"We want to retain our majority stake in this joint venture and we have four plantation assets up for partnership," Tanuri said. (Reporting by Fathiya Dahrul; Editing by Anand Basu)