Chandra Asri (CPA) and Michelin have formed a partnership for the inauguration of a synthetic rubber plant, which is managed by PT Synthetic Rubber Indonesia (SRI). This partnership is a milestone of the joint venture agreement between PT Petrokimia Butadiene Indonesia (PBI, a subsidiary of CAP) with Michelin, which has been signed by both parties in June 2013.
Construction of the plant is planned to begin in early 2015, completion and start-up is targeted at the beginning of 2017. SRI will produce Polybutadiene Rubber (PBR) with Neodymium Catalyst and Solution Styrene Butadiene Rubber (SSBR); both are utilized as feedstocks for the production of environmentally friendly tires.
Shareholding composition of the new joint venture is Michelin and PBI by 55 % and 45 %, respectively.