Michelin-backed joint venture selects DHL�s end-to-end solution for shipment of synthetic rubber for tire production

• DHL to coordinate shipment of an
  important annual volume of synthetic rubber from plant to port for PT SRI, a
  joint venture between Michelin and Chandra Asri Petrochemical
• End-to-end solution integrates DHL’s
  cross-business strengths in freight forwarding, warehousing, and customs
  clearance to support rapid increases in demand
• Key factors in DHL’s selection were industry-specific
  tire expertise, global network with local knowledge (“glocal” capabilities), supply
  chain digitization, and innovation approach

JAKARTA, INDONESIA – Media
OutReach – 1
November 2018 – PT Synthetic Rubber Indonesia (PT SRI), a joint venture between
the Michelin Group and local partner Chandra Asri Petrochemical, has
consolidated its plant-to-port supply chain under a single DHL solution for faster,
more scalable shipment of increasing volumes of synthetic rubber — a critical
ingredient in modern tire production.

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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 as appropriate for Michelin’s world-class tire products.

 

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 — a
pioneering effort for Michelin.

 

“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,” 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.^[2]“

 

Leverage DHL’s broad services

The solution for PT SRI integrates core competencies from across
DHL’s business divisions. This includes shuttle
transportation from the PT SRI plant to DHL’s warehouse, warehouse management
activities, the 125km warehouse- to- port journey, export & import
activities including customs clearance, and managing third party contracted
carriers for outbound shipments. DHL is also responsible for the timely
shipment of rubber samples from Indonesia to global Michelin plants. 

 

Industry expertise
& “glocal” capabilities

“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.

 

Supply chain
digitization & innovation approach

“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,” said Jan
Willem Winkelhuijzen, Managing Director DHL Supply Chain Indonesia.

 

“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,” added Ilhami
Arslanoglu, Vice
President Auto-Mobility Asia Pacific, DHL Customer
Solutions & Innovation. 

 

You can find the press
release for download as well as further information on dpdhl.com/pressreleases

On the Internet: dpdhl.de/press

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