Joint venture PT Synthetic Rubber Indonesia (PT SRI), between the Michelin Group and Chandra Asri Petrochemical have selected DHL to provide a solution for a faster, more scalable shipment of increasing volumes of synthetic rubber one of the most critical elements in tire production today.
The new solution allows the joint venture to consolidate their plant-to-port supply chain.
DHL’s scope is as follows, 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.
PT SRI worked closely with DHL to address all local shipping regulations and requirements during the Cilegon plant’s construction, this was done to ensure uninterrupted high-volume deliveries now and for the future.
President Director of DHL Global Forwarding Indonesia, Vincent Yong said, “Global consumption of raw materials for tires increased more than 20% from 45.2 billion tons from 2017 to 54.5 billion in 2018,1 raising both the market opportunities and pressure on materials producers to deliver to demand,”
He further added, “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.”
PT SRI Chief Financial Officer, Jan Blaauw said, “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,”
Mr. Blaauw continued, “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.”
The new end-to-end logistics solution will support all PT SRI Exports to Michelin plants located throughout the world.
Vice President Auto-Mobility Asia Pacific for DHL Customer Solutions & Innovation, Ilhami Arslanoglu said, “The global partnership relationship led by DHL Customer Solutions & Innovation allows partners to accelerate both their innovation agenda and sustainability program by joining forces on local and global projects.”
Managing Director for DHL Supply Chain Indonesia, Jan Willem Winkelhuijzen added, “As the global auto-mobility supply chain continues to grow in complexity, it’s more vital than ever for companies to work with their logistics partners. Together they should ensure upstream supply chains remain flexible enough to minimize complexity and optimize current production while also remaining adaptable enough to meet future spikes in demand.”