DHL is to coordinate shipment of an annual volume of synthetic rubber from plant to port for PT SRI, a joint venture between Michelin and Chandra Asri Petrochemical.
DHL will oversee all road freight transportation, warehousing, and customs clearance of synthetic rubber between the PT SRI plant in Cilegon in West Java to Tanjung Priok port in North Jakarta -with particular focus on quality and safety.
Key factors in DHL’s selection were industry-specific tyre expertise, global network with local knowledge (“glocal” capabilities), supply chain digitisation, and innovation approach.
This end-to-end logistics solution will support PT SRI exports to all Michelin plants globally. To ensure uninterrupted high-volume delivery now and in future, PT SRI worked closely with DHL to address all local shipping regulations and requirements during the Cilegon plant’s construction.
“Global consumption of raw materials for tires increased more than 20% from 45.2 billion tons from 2017 to 54.5 billion in 2018, raising both the market opportunities and pressure on materials producers to deliver to demand,” said Vincent Yong, President Director DHL Global Forwarding Indonesia. “DHL’s end-to-end solution gives PT SRI the foundation to flexibly scale operations to meet growing future international and domestic demand as it continues to increase.”
“Several other affiliates of the Michelin Group have already outsourced the storage and transport activities to DHL. Since DHL offers the same services locally, we aligned on this partnership between Michelin and DHL and extended it to Indonesia,” said Jan Blaauw, Chief Financial Officer of PT SRI. “With DHL’s industry-specific expertise, its global network and its extensive knowledge of the Indonesia logistics industry, we were confident that the DHL solution would meet PT Synthetic Rubber Indonesia’s stringent compliance and quality requirements, even as demand volumes continue to accelerate and grow.”
In future, the partnership may extend to include transportation of synthetic rubber to customers domestically as Indonesia’s automotive manufacturing industry continues to grow.