HANOVER, Germany—Continental A.G. and an international aid agency are forming a partnership designed to improve the sustainability of the natural rubber supply chain in Indonesia.
The partnership with the Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) G.m.b.H. will strive to develop a criteria catalog for sustainable production of NR, to train farmers in sustainable production in accordance with these criteria and to track the rubber from smallholders to production at Continental.
Among the initiative's aims are improved rubber quality, higher yields and supply chain optimization that will generate higher incomes for rubber tree cultivators, Conti said. Indonesia is considered the No. 2 producer of NR worldwide.
To safeguard and monitor sustainable rubber production, Continental and the GIZ will implement a traceability system and increase the traceable production of rubber in Indonesia's West Kalimantan region over the next three years, Continental said, noting that the initiative also will seek to ensure that rubber cultivation doesn't lead to rainforest deforestation.
"Our objective is to establish a traceable and sustainable supply chain and set a best practice example for the production of natural rubber," said Nikolai Setzer, who is in charge of corporate purchasing and the tire division in Conti's executive board.
"The partnership with GIZ gives us access to local players whom we need to achieve traceability and sustainability."
The GIZ describes itself as a "provider of international cooperation services for sustainable development and international education work," dedicated to building a future worth living around the world.