FRENCH tyre maker Michelin and Indonesia-based PT Petrokimia Butadiene Indonesia (PBI), a wholly-owned subsidiary of PT Chandra Asri Petrochemical Tbk (CAP), have signed an agreement to create a joint venture company, to produce synthetic rubber in Indonesia. The new company will be owned 55% by Michelin and 45% by PBI. The total Investment is estimated at US$435 million. Pending final investment decision, plant construction is expected to commence in early 2015 with completion and start-up targeted for the beginning of 2017.
In line with high growth of automotive industry in new emerging countries and the global trend towards more performance requirement from tyres, which are safer, last longer and deliver fuel savings, the demand for more technological synthetic rubber are forecast to increase as these are necessary to deliver more performances in a single tyre and be at the same time environmentally friendly. Michelin says it introduced the green tyre in 1992 abd is innovating every day to deliver the Michelin Total Performance.
Michelin and PBI will combine in this partnership their expertise, bring significant synergies and create value both for the Indonesian and Southeast Asian markets.
PT Petrokimia Butadiene Indonesia (PBI) is the first butadiene plant owner in Indonesia and a subsidiary of PT Chandra Asri Petrochemical Tbk, the largest vertically integrated petrochemical company in Indonesia. The butadiene plant target for completion and commercial production on July 2013.
Chandra Asri Petrochemical complex is located at Ciwandan, Cilegon in Banten Province is Indonesia’s premier petrochemical plant incorporating world class technology and supporting facilities. CAP runs the only naphtha cracker in Indonesia that produces ethylene, propylene, crude C4, Pyrolysis Gasoline (Py-gas), PE, PP and styrene monomer for the Indonesia’s market as well as regional export markets.