MICHELIN has inked a partnership deal with a subsidiary of Jakarta-listed PT Chandra Asri Petrochemical to build a US$435 million synthetic rubber plant.
In an agreement, the two firms will establish a joint venture, wth Muchelin owning 55% stake, and 45% by Chandra Asri’s wholly owned subsidiary, PT Petrokimia Butadiene Indonesia (PBI).
PBI is on track with building Indonesia’s first butadiene plant in Cilegon, Banten that will yield an annual capacity of 100,000 tonnes of butadiene for tyre production.
The JV’s new plant is expected to commence construction in early 2015 and completed within two years.