Michelin begins Indonesian synthetic rubber JV

A deal signed between Compagnie Financière Groupe Michelin and PT Petrokimia Butadiene Indonesia (PBI), a wholly-owned subsidiary of PT Chandra Asri Petrochemical Tbk (CAP), will see the production of styrene and butadiene-derived synthetic rubber taking place in Indonesia through a joint venture firm. The agreement gives Michelin 55 per cent ownership in the new company, with PBI holding the remainder. The total investment is estimated to be US$435 million, with plant construction expected to commence in early 2015. Completion and start-up is targeted for the beginning of 2017.

The signing ceremony was held in Jakarta, Indonesia on 17 June and was attended by representatives of both parties. The agreement was signed for Michelin by Luc Minguet, (senior vice-president/ chief procurement officer) and Chan Hock Sen (vice-president, legal & tax services, Asia Pacific), while PT Petrokimia Butadiene Indonesia was represented by Erwin Ciputra (president director of CAP & PBI), Paramate Nisagornsen (vice-president, director of CAP & PBI), and Suryandi (director of PBI).

PT Petrokimia Butadiene Indonesia has already established the country’s first butadiene plant, and this $150 million, 100,000 tonne a year facility is scheduled to enter operation in July 2013. Michelin and PBI say they will combine their expertise in their new partnership and create value both for the Indonesian and South East Asian markets. Information regarding the joint venture plant’s capacity has not yet been published.

Chandra Asri Petrochemical complex is located at Ciwandan, Cilegon in Banten Province is Indonesia’s premier petrochemical plant, incorporating world class, state-of-the-art technology and supporting facilities. CAP runs the only Naphtha Cracker in Indonesia that produces high quality Ethylene, Propylene, Crude C4, Pyrolysis Gasoline (Py-gas), Polyethylene, Polypropylene and Styrene Monomer for the Indonesia and regional export markets.