Thursday 30 November 2023

Michelin Has Three Elastomer Factories in the World, One of which is Indonesia


Elastomer or elastic polymer is a material composed of long molecules (polymer) which is able to return to its original shape after being pulled and stretched to a size that is relatively long compared to its initial size (elastic).

The world-class tire company Michelin, headquartered in Clermont-Ferrand, France has a presence in 175 countries, and has more than 132,000 employees, operating 67 tire production facilities that together produce approximately 200 million tires by 2022.

In journalist factory visit to PT Synthetic Rubber Indonesia (SRI)–part of Michelin’s integrated supply chain in Indonesia, and part of Chandra Asri Petrochemical Tbk’s petrochemical portfolio–in Cilegon, Banten, mentioned by Michel Lefebvre, President Director of PT Synthetic Rubber Indonesia that Michelin has three elastomer factories.

Observing the processed rubber resulting from chemical processes at PT Synthetic Rubber Indonesia [PT SRI] “One in France is around 70 years old, then in the United States between 30 years, and another in Indonesia which is only five years old. We will soon commemorate “Michelin’s Fifth Anniversary in Indonesia,” he explained.

In this fifth anniversary of Michelin in Indonesia, a new project will be launched.

First operating in 2013, PT SRI is the first and only Solution Styrene Butadiene Rubber (SSBR) factory in Indonesia.

SSBR is the best raw material for producing high-performance tire tread compounds, especially for tires with low rolling resistance and for the high-performance tire segment.

To make the raw material for this type of synthetic rubber, cutting-edge technology is needed.

Types of tires produced by PT Synthetic Rubber Indonesia with the Michelin mascot [PT SRI] “PT SRI has Michelin DNA in its processes and technology. Michelin and Chandra Asri have “given birth” to leaders in the synthetic rubber industry. PT SRI is an important part of “Michelin’s supply chain globally, considering that Michelin only has three elastomer factories in the world and PT SRI is one of them,” explained Sai Banu Ramani, President Director of PT Michelin Indonesia.

The presence of PT SRI answers the increasing demand for high quality synthetic rubber products, especially for fulfill the vehicle tire industry market. 

The global tire market is worth 245.53 billion United States (US) dollars in 2022 and is estimated to reach 374.51 billion US dollars in 2028, growing at a CAGR (Compound Annual Growth Rate) or the average annual growth of a investment in a specific period, more than one year) of 7.42 percent.

Increasing vehicle sales, demand for tire replacement, and increasing penetration of electric vehicles have resulted in new demand for tire products globally.

In its five year journey, PT SRI combined Chandra Asri raw materials and Michelin technology to convert raw materials into semi-finished products which are used as the main component in the production of environmentally friendly tires.

“Entering our fifth year, we reaffirm our commitment to creating added value through high quality products, sustainable practices and support for the environmentally friendly tire industry,” added Michel Lefebvre, President Director of PT Synthetic Rubber Indonesia.

Currently, 90 percent of PT SRI’s products are absorbed by the export market to more than 10 countries, with a contribution value to foreign exchange reserves of more than 250 million United States (US) dollars.

Some of Indonesia’s Michelin tire export markets are China, Europe and North America, namely the United States.

“Michelin tires are marketed globally and among the products circulating abroad, there are definitely those supplied from Indonesia,” concluded Michel Lefebvre.

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