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New joint venture between Ayala and Austria´s leading motorcycle producer KTM

Ayala Corporation has announced their joint venture with KTM, one of the world's leading motorcycle manufacturers. The Austrian-based KTM Group builds and markets a wide range of off-road and street motorcycles. “We are delighted to have found a strong and capable Asian partner in the Ayala group, one of the leading conglomerates in the Philippines, a country we view as a key platform for achieving our global growth strategy”, said Stefan Pierer, Chief Executive Officer of KTM. The Ayala Corporation will serve as the exclusive local distributor of KTM products in the country and will be manufacturing motorcycles in Laguna Tecnopark. AC Industrials, formerly Ayala Automotive Holdings, Inc., will house the manufacturing operations of the partnership along with the existing and future assets of listed Integrated Micro-Electronics, Inc. The production is planned to start already in January 2017 with initially 10,000 units a year. The production line at Laguna is capable of producing 20,000 units a year and an expansion is already being planned according to Mr. Tan, President and Chief Executive Officer of AC Industrials. The Partnership is investing around 2 to 3 million USD for the production of 10,000 units initially with Ayala covering 66% of the costs. Around 70% of the motorcycles produced in the Philippines will be exported to China and 30% will be sold to AC Industrials wholly owned firm Adventure Cycle Philippines, for local distribution. Forty percent of the materials will be provided from the Philippines or other ASEAN Members. Mr. Tan hopes in the future not only to manufacture, but also to develop parts for the motorcycles.