Multistrada Arah Sarana Tbk

Growing Stronger, thinking big

06 Januari 2010

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How could a small manufacturing company riven with industrial relations problems turn into a much larger healthy unit with happy staff, ready to expand as the global recession subsides?

The answer is not exactly rocket science: a conventional combination of experienced, professional managers, sound capital investment and a committed workforce did the trick.

PT Multistrada Arah Sarana (MASA) Tbk. currently has capacity to produce 17.500 radial car tires per day. It exports about 80% of its products under the brands Achilles, Corsa and Strada to more than 60 countries, and the remaining 20% is sold on the domestic market. The company also produces 8000 motorcycle tires daily, entirely for the domestic market.

MASA’s largest export market is the Asia-Pacific region, particularly Japan, Australia, Thailand, and Malaysia. The second-largest is Europe and the Middle East. MASA’s success in developing the export market is because MASA can produce top quality products comparable to those of other global players while its cost structure is only about one-third of the multinationals, thanks to relatively low labor costs.

“There is still much room for us to grow. Our main strength is in the quality of our products.” As concluded by Hartono Setiobudi, MASA’s director.

MASA is now ranked as the 52th largest tire maker in the world (from 72^nd). MASA aims to be in the top 30 list over the next two years when it realizes its plan to double production capacity.The expansion drive is partly driven by rising order from the US, which has just imposed import duties on tire products from China.

“You can’t engaged in a branding campaign if you don’t have quality products.” added by J. Sukarman, PT MASA’s Director.

Taken from Globe Asia’s Exclusive Interview with J. Sukarman & Hartono Setiobudi, p.84 Globe Asia Volume 4 Number 1 – January 2010