French tyre manufacturer Michelin and Indonesia’s Chandra Asri Petrochemical have agreed to create a joint venture with an investment of US$435 million in a new synthetic rubber plant in Indonesia to supply the local tyre industry and increase export potential.
The plant will be controlled by Synthetic Rubber Indonesia, which will be 45% owned by Chandra Asri Petrochemical’s subsidiary Petrokimia Butadiene and 55% by Compagnie Financiere Michelin.
Construction of the plant is scheduled to begin in 2015 with financial decisions and other preparations to be completed in 2014.
The plant is scheduled to begin production in 2017 of tyre feedstocks such as polybutadiene rubber with neodymium catalyst and solution styrene butadiene rubber. Production capacity will be 120,000 tons per year.