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July 09, 2015 02:00 AM

Michelin JV to build rubber plant in Indonesia

Shahrzad Pourriahi, European Rubber Journal
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    CILEGON, Indonesia—A Michelin-controlled joint venture has awarded Toyo Engineering Corp. and PT Inti Karya Persada Tehnik (IKPT) a contract to build a 120,000 metric tons a year synthetic rubber plant in Cilegon.

    PT Synthetic Rubber Indonesia (SRI), a joint venture company of Michelin and PT Chandra Asri Petrochemical Tbk, awarded the project to the firms July 6.

    The plant will produce solution styrene butadiene rubber and polybutadiene rubber with neodymium catalyst technology licensed by Michelin, which will be used to produce tires.

    The plant will utilize butadiene feedstock produced by PT Petrokimia Butadiene Indonesia, a subsidiary of CAP.

    According to an announcement by Toyo, The joint venture PT SRI awarded the offshore supply contract to Toyo and the detail engineering, procurement and construction contract to IKPT separately.

    The project is forecast to be completed in 2018.

    Toyo previously was awarded a butadiene plant project in 2011 and ethylene plant expansion project in 2013 from CAP.

    With a population of approximately 240 million, Indonesia offers high demand for tires along with an increasing market for cars and motorcycles.

    Michelin owns a 55-percent stake in PT SRI, while PT Styrindo Mono Indonesia, a subsidiary of CAP, owns the other 45 percent.

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