• DHL to coordinate shipment of animportant annual volume of synthetic rubber from plant to port for PT SRI, ajoint venture between Michelin and Chandra Asri Petrochemical
• End-to-end solution integrates DHL'scross-business strengths in freight forwarding, warehousing, and customsclearance to support rapid increases in demand
• Key factors in DHL's selection were industry-specifictire expertise, global network with local knowledge ("glocal" capabilities), supplychain digitization, and innovation approach

JAKARTA, INDONESIA - MediaOutReach - 1November 2018 - PT Synthetic Rubber Indonesia (PT SRI), a joint venture betweenthe Michelin Group and local partner Chandra Asri Petrochemical, hasconsolidated its plant-to-port supply chain under a single DHL solution for faster,more scalable shipment of increasing volumes of synthetic rubber -- a criticalingredient in modern tire production.

DHL will oversee all road freight transportation, warehousing, andcustoms clearance of synthetic rubber between the PT SRI plant in Cilegon in WestJava to Tanjung Priok port in North Jakarta -- with particular focus on qualityand safety as appropriate for Michelin's world-class tire products.

This end-to-end logistics solution will support PT SRI exports toall Michelin plants globally. To ensure uninterrupted high-volume delivery nowand in future, PT SRI worked closely with DHL to address all local shippingregulations and requirements during the Cilegon plant's construction -- apioneering effort for Michelin.

"Global consumption of raw materials for tires increased more than20% from 45.2 billion tons from 2017 to 54.5 billion in 2018,^[1]raising both the market opportunities and pressure on materials producers todeliver to demand," said Vincent Yong, President Director DHL Global ForwardingIndonesia. "DHL's end-to-end solution gives PT SRI the foundation to flexiblyscale operations to meet growing future international and domestic demand as itcontinues to increase.^[2]"

Leverage DHL's broad services

The solution for PT SRI integrates core competencies from acrossDHL's business divisions. This includes shuttletransportation from the PT SRI plant to DHL's warehouse, warehouse managementactivities, the 125km warehouse- to- port journey, export & importactivities including customs clearance, and managing third party contractedcarriers for outbound shipments. DHL is also responsible for the timelyshipment of rubber samples from Indonesia to global Michelin plants. 

Industry expertise& "glocal" capabilities

"Several other affiliates of the Michelin Group have alreadyoutsourced the storage and transport activities to DHL. Since DHL offers thesame services locally, we aligned on this partnership between Michelin and DHLand extended it to Indonesia," said Jan Blaauw, Chief Financial Officer of PTSRI. "With DHL's industry-specific expertise, its global network and itsextensive knowledge of the Indonesia logistics industry, we were confident thatthe DHL solution would meet PT Synthetic Rubber Indonesia's stringentcompliance and quality requirements, even as demand volumes continue toaccelerate and grow."

In future, the partnership may extend to include transportation ofsynthetic rubber to customers domestically as Indonesia's automotivemanufacturing industry continues to grow.

Supply chaindigitization & innovation approach

"As the global auto-mobility supply chain continues to grow incomplexity, it's more vital than ever for companies to work with theirlogistics partners. Together they should ensure upstream supply chains remainflexible enough to minimize complexity and optimize current production whilealso remaining adaptable enough to meet future spikes in demand," said JanWillem 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 andsustainability program by joining forces on local and global projects," added IlhamiArslanoglu, VicePresident Auto-Mobility Asia Pacific, DHL CustomerSolutions & Innovation. 

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

On the Internet: dpdhl.de/press

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