ERJ staff report (PR)
Singapore – Demand for rubber materials in Indonesia is expected to show continued strong growth following on from a 7-percent increase, to 3.2 million tonnes, in 2013 according to events organiser the Centre for Management Technology (CMT).
The market is being driven by the tire and automotive manufacturing sectors in the country, according to Singapore-based CMT, which cited a Reuters report suggesting that Indonesia’s automotive market could become the largest in south east Asia within two years.
The strength of the sector is evidenced, for example, by Toyota’s expansion plans in Indonesia, and the construction of a new plant in Cilegon, Banten province, by Chandra Asri and Michelin to be completed by early 2015.
Taiwanese bicycle tire maker Cheng Shin Rubber is also establishing a plant in Jakarta, while Maxxis Tyres is planning to complete a €235-million plant by 2015, CMT also noted.
CMT is staging a conference on the global tire and rubber markets, in Jakarta on 20-21 August.