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Michelin ramps up tire production after taking over local producer
Some adjustments are needed to enable the Cikarang factory to produce more varied products under Michelin, BFGoodrich and Uniroyal in larger quantities.
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A worker checks a newly manufactured tire at Multistrada Arah Sarana's factory in Cikarang, Bekasi, West Java. (Kontan/Cheppy A. Muchlis)
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T Michelin Indonesia, part of the global tire company Michelin Global, is ramping up its tire production in Indonesia to tap into growing tire demand in the country following its acquisition of local tire producer PT Multistrada Arah Sarana last year, the company’s top executive has said.
Michelin Group Indonesia president director Steven Vette, who was appointed to his current position in December 2019, said the French tire producer was currently making some adjustments to the production facilities of a local factory in Cikarang, Bekasi, West Java, which it now owned following its acquisition of Multistrada in January 2019.
Some adjustments were needed to enable the factory to produce more varied products under Michelin, BFGoodrich and Uniroyal in larger quantities, he said, adding that the factory had already produced tires under Corsa and Achilles.
“We are currently in a ramp-up stage. Gradually we will ramp up volume toward the end of the year,” Vette told reporters during a media event in Jakarta on Tuesday, adding that the adjustment process was on schedule despite it being a “very ambitious plan”.
The Cikarang factory has a production capacity of more than 180,000 tons of tires, comprising about 11 million passenger car tires, 9 million two-wheeled vehicle tires and 250,000 truck tires. However, at present the factory only produces two-wheeled vehicle tires for Multistrada’s Corsa and Achilles.
In terms of production capacity, the factory that Michelin acquired from Multistrada is the fourth-largest Michelin factory in the world. Currently, the company was still on its way to increasing production to achieve the factory’s maximum production capacity by 2021 or even exceed it, Vette said.
“We think we will add, by the end of this year, several million tires, and therefore we are very confident for 2021,” he added.
