Chinese tire maker advances first overseas plant in Indonesia

Chengdu, China – Chinese motorcycle tire producer Sichuan Yuanxing Rubber Co. Ltd has unveiled plans to build its first overseas tire manufacturing plant in Indonesia, launching a tender for the construction of the new facility.

According to a supplier recruitment notice issued 21 July, the project will be built at the Batang Integrated Industrial Park (KITB) in Central Java on a 405,000-sq.m site.

The development will be carried out in two phases, with phase one covering around 230,000 sq.m and phase two a further 130,000 sq.m, subject to final planning approval.

The planned facility will include a mixing workshop, radial tire production building, calendering workshop, maintenance workshop, utility buildings, raw material warehouse and automated finished goods warehouse, according to the notice.

Construction is scheduled to take 300 calendar days from the official start date.

Yuanxing said it is seeking contractors with overseas construction experience, giving preference to companies with previous project experience in Indonesia. Applications are open until 15 Aug.

According to Chinese industry reports, the Indonesia project marks Yuanxing's "transition from product exports to an overseas production capacity strategy."

The company, which has specialised in two-wheel tires for more than 30 years, plans to use the facility to manufacture motorcycle tires for the Indonesian and wider Southeast Asian markets, while also supplying export customers.

Industry reports noted that Indonesia is one of the world's largest motorcycle markets, with more than 137 million motorcycles in operation, offering significant opportunities for localised tire production.

The project is also expected to strengthen Yuanxing's international manufacturing network by shortening supply chains, reducing logistics costs and mitigating trade barriers, according to the reports.