According to foreign media reports, Michelin has recently reached an agreement with PTChandraAsriPetrochemical, an Indonesian petrochemical product manufacturer, to form a joint venture in the region to produce synthetic rubber products.

The two companies recently issued a joint statement, the two sides will invest a total of 435 million US dollars in the formation of a joint venture in Indonesia, Michelin and PTChandraAsriPetrochemical will hold 55% and 45% of the new company's shares. The two companies will also start construction of new factories in early 2015, with the production start date set at the beginning of 2017.

In contrast to the declining trend in the European auto market, sales of passenger cars and trucks in many countries in Asia have continued to climb. For this reason, while Michelin closed its factories in Europe, it plans to elevate tire production capacity in Asia.

"They look like they are investing here to target the replacement of the tire market. Considering the current economic situation and road conditions in Indonesia, local motorists are expected to replace their tires every two years," said PTDanareksaSekuritas analyst Joko Sogie. The cycle time for changing tires is about 3 years.”

As a result of overcapacity in Europe, Michelin recently announced plans to close down a French factory and sell truck tires in Algeria. The company announced on the 12th this month that it will stop tire production in Colombia and shut down two local factories. .

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