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November 08, 2017 12:00 AM

Michelin-licensed rubber plant in Indonesia to start production in 2018

Shahrzad Pourriahi
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    Jakarta – A Michelin-licensed synthetic rubber manufacturing plant in Indonesian is set to be operational in the first quarter of 2018, according to Indonesian press reports.

    PT Synthetic Rubber Indonesia (SRI), a joint venture company of Michelin and PT Chandra Asri Petrochemical Tbk (CAP) will use butadiene feedstock produced by PT Petrokimia Butadiene Indonesia, a subsidiary of CAP, to produce 120 kilotonnes per annum of solution styrene butadiene rubber (SSBR).

    According to CAP corporate secretary, Suryandi “the factory is now almost finished and will be completed in the first quarter of 2018,” said local business news website Kontan on 6 Nov.

    As previously reported by ERJ, the facility in Cilegon will produce SSBR and polybutadiene rubber with neodymium catalyst technology (PBR) licensed by Michelin, which will be used to produce tires.

    With a population of approximately 240 million, Indonesia offers high demand for tires along with increasing of automotive and motorcycles.

    Michelin owns a 55% stake in PT SRI, while PT Styrindo Mono Indonesia, a subsidiary of CAP, owns the other 45%.

    With the operation of synthetic factories, then Michelin will have three synthetic factories globally .

    Quoting CAP investor relations official Harry Tamin, Kontan said Michelin will absorb all the produced SSBR in early stages.

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