Hanover, Germany – Tire, automotive and technology supplier Continental AG has entered a partnership with the German development agency (Deutsche Gesellschaft für Internationale Zusammenarbeit - GIZ) to improve the sustainability of the natural rubber supply chain in Indonesia.
In a 21 Feb press release, the Hanover-based company said the aim of the partnership was to develop a “criteria catalogue” for sustainable production of NR and to train farmers in accordance with those criteria.
The objective is to improve rubber quality, achieve higher yields and optimise supply chain, so rubber tree cultivators benefit from higher incomes, Conti added.
Additionally, the project will aim to ensure that rubber tree cultivation does not lead to deforestation.
As part of the programme, Continental and GIZ will implement a “traceability system”.
This will involve increasing “the traceable production of rubber” in West Kalimantan over the next three years.
In total, 400 farmers will be trained to grow “high-quality rubber” in accordance with clearly defined sustainability criteria.
An electronic system will be developed to ensure full traceability of the raw material along the entire supply chain.
“Our objective is to establish a traceable and sustainable supply chain and set a best practice example for the production of natural rubber,” said Nikolai Setzer, who is in charge of corporate purchasing and the Tire division in the executive board of Continental AG.
“The partnership with GIZ gives us access to local players whom we need to achieve traceability and sustainability,” he added.