Michelin acquires leading Indonesian tire manufacturer PT Multistrada Arah Sarana TBK with an 80% stake in the company. Michelin’s recent acquisition is a move to strengthen its presence in the highly promising but local-production dominated Indonesian market.
Jean-Dominique Senard, Chief Executive Officer of the Michelin Group, said: “The acquisition of Multistrada represents an excellent opportunity for Michelin to expand its operations in Indonesia, the most populous country in Southeast Asia, and immediately gain competitive, good-quality production capacity without having to create any new manufacturing facilities.”
Pieter Tanuri, Chief Executive Officer of Multistrada, said: ”we are very proud of what we achieved with Multistrada and we are confident Michelin is the ideal partner to take Multistrada forward into a new era of growth and success for the benefit of all stakeholders and employees.”
With a production capacity of more than 180 thousand Tons (i.e., 11 million Passenger car tires, 9 million Two-wheel tires and 250 thousand Truck tires), Multistrada generated net sales of USD 281 million in 2017.
Leveraging its technical expertise with limited new investment, Michelin will gradually convert production from Tier 3 passenger car tires to Tier 2 Michelin Group brands, thereby allowing more Tier 1 production at other Asian plants and supporting growth of demand of Tier 2 volumes in Europe, North America and Asia.
In addition, through the transaction Michelin will acquire a 20% stake in the retailer PT Penta Artha Impressi (“Penta”) in partnership with Indomobil and private investors, which will boost the marketing and sales of Michelin Group brands in Indonesia allowing Michelin to secure significant access to a major market and be well placed to benefit from the market’s future growth and expansion.