Jakarta – Construction work has been completed at a Michelin-licensed synthetic rubber production plant in Indonesia, with production set to start later this month, it was announced 20 Aug.
The facility is to be operated by PT Synthetic Rubber Indonesia (SRI), a $435-million (€375 million) joint venture company of Michelin and PT Chandra Asri Petrochemical Tbk (CAP).
Located in in Banten province, near Jakarta, the production will reach 120 kilotonnes per annum at full capacity, said CAP in a 20 Aug statement.
“This is a new milestone for us. Our plant completion means we are now able to meet Indonesia’s demand for eco-friendly tire feedstock and ease import of raw materials,” said Brad Karas, CEO of SRI.
SRI produces polybutadiene rubber with neodymium catalyst and solution styrene butadiene rubber; both of which are used for the production of the environmentally friendly tires.
The plant will source it butadiene from Chandra Asri’s subsidiary, Petrokimia Butadiene Indonesia.
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.
Michelin is initially expected to absorb all of the SSBR produced by the plant.
With a population of approximately 240 million, Indonesia offers high demand for tires along with increasing of automotive and motorcycles.