Michelin to Open Rubber Plant in Indonesia
In this article (5)
Michelin will work with Barito Pacific and invest up to US$400 million (Rp5.1 trillion). The plant’s construction is scheduled to start in 2016, with the goal to have it begin operations by 2019.
Both Michelin and Barito Pacific had also expressed their desire to develop rubber plantations in Jambi and West Kalimantan.
Michelin plans to establish a joint venture with Barito Pacific’s subsidiary, PT Chandra Asri Petrochemical Tbk.
Michelin’s plan is expected to help increase the absorption rate of rubber by Indonesian industries.
Right now, about 20 percent of the national rubber production is consumed by the tire industry; far below Malaysia, China and India’s; each absorbing more than 40 percent of their production.
Questions & Answers
Q.What is the planned investment for Michelin's new rubber plant?
What is the planned investment for Michelin's new rubber plant?
Michelin and Barito Pacific will invest up to US$400 million (Rp5.1 trillion) into the project. This significant investment highlights the scale of the new manufacturing facility in Indonesia.
Q.When is the new rubber plant expected to begin operations?
When is the new rubber plant expected to begin operations?
The plant's construction is scheduled to start in 2016, with the aim for operations to commence by 2019. This timeline suggests a relatively swift development and operationalisation period.
Q.Who is Michelin partnering with for this new venture?
Who is Michelin partnering with for this new venture?
Michelin will establish a joint venture with Barito Pacific and its subsidiary, PT Chandra Asri Petrochemical Tbk. This collaboration will be key to the development and operation of the plant.
Q.What is the current rubber absorption rate in Indonesia compared to other countries?
What is the current rubber absorption rate in Indonesia compared to other countries?
Currently, Indonesia's tire industry consumes about 20 percent of national rubber production. This is significantly lower than Malaysia, China, and India, which each absorb over 40 percent of their production.
Reader pulse
Is Michelin's Indonesian plant a deliberate step?
24,373 votes so far