A deal signed between Groupe Michelin and PT Petrokimia Butadiene Indonesia (PBI), a wholly owned subsidiary of PT Chandra Asri Petrochemical (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% ownership in the new company, with PBI holding the remainder. The total investment is estimated to be $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 June 17 and was attended by representatives of both parties.
PT Petrokimia Butadiene Indonesia has already established the country’s first butadiene plant, and this $150 million, 100,000-ton/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 Southeast 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 considered Indonesia’s premier petrochemical plant, incorporating state-of-the-art technology and supporting facilities. CAP runs the only Naphtha Cracker in Indonesia that produces ethylene, propylene, crude C4, pyrolysis gasoline (Py-gas), polyethylene, polypropylene and styrene monomer for the Indonesia and regional export markets. (Tyres & Accessories)
