Sailun Opens Indonesia Tire Plant

Recently, Sailun Group, a leading Chinese tire manufacturer, officially commenced production at its new factory in Demark, Central Java, Indonesia. With a total investment of 4 trillion Indonesian Rupiah, this project represents a key step in Sailun's localization strategy in Southeast Asia and adds a new strategic foothold to its global production network.

As a comprehensive industrial base integrating R&D, manufacturing, sales, and service, the factory will primarily meet the Indonesian market's demand for high-performance tires, further complementing Sailun's production capacity in Southeast Asia.

The Demark factory is a crucial step for Sailun Group in its deep cultivation of the Southeast Asian market, boasting clear production capacity planning and a high degree of localization adaptability. According to public information, the factory is designed to produce 3.6 million passenger car tires, 600,000 truck/commercial vehicle tires, 37,000 tons of construction machinery tires, and 1.5 million inner tubes annually, comprehensively covering the tire needs of key sectors in Indonesia, including passenger cars, commercial vehicles, and construction.

Sailun Group President Xie Xiaohong stated that the commencement of production at the Indonesian factory is not a short-term market move, but a systematic strategic deployment based on a long-term commitment, aiming to build a deeply integrated local business ecosystem.

To address Indonesia's unique climate and road conditions, the factory has undergone specialized optimization in its R&D and production processes. Located in the tropics, Indonesia's hot and humid climate and diverse road conditions place higher demands on tire durability, safety, and fuel economy.

Sailun leverages the technological resources of its four global R&D centers to conduct targeted R&D for local usage scenarios, ensuring products are fully adaptable to the local environment. Furthermore, the factory also functions as a regional supply chain center, reducing market response time from months to weeks, significantly improving its ability to respond quickly to Indonesian market dynamics.

Regarding sales and service system development, Sailun adheres to the "localization operation" concept, planning to establish a professional local team to collaborate deeply with local dealers, covering the entire process from market strategy formulation and channel expansion to retail terminal empowerment, aiming to create a stable, transparent, and win-win value chain ecosystem.

The factory will also establish passenger car and commercial vehicle tire service centers, providing one-stop services such as professional installation, electronic warranty, and regular maintenance, building customer trust through high-quality service, and transforming from single-product sales to full-cycle customer relationship management.

The commissioning of the Indonesian factory is a significant addition to Sailun Group's production capacity layout in Southeast Asia. Currently, Sailun has established and operates multiple production bases in Southeast Asian countries such as Vietnam and Cambodia. The Kampot Special Economic Zone project in Cambodia is gradually building a complete rubber industry chain ecosystem, creating synergies between upstream and downstream sectors.

As a populous country and emerging economy in Southeast Asia, Indonesia experiences continuous growth in car ownership and construction demand, presenting a vast potential tire market. By establishing a localized production base in Indonesia, Sailun can not only leverage local resources to reduce operating costs but also utilize regional trade agreements such as RCEP to reach surrounding markets, further enhancing its international competitiveness.

As one of the top ten tire companies globally, Sailun has gradually established a production network covering Qingdao and Dongying in China, Vietnam, Mexico, Indonesia, and other locations. Production bases in Egypt and Shenyang are also under active development.

The commissioning of the Demark factory in Indonesia will create synergies with existing production bases, strengthening Sailun's global advantages in "technology + production capacity + industry chain," injecting new momentum into its continued development in the Southeast Asian market and expansion of its global business. It also provides a valuable practical example for Chinese tire companies building localized ecosystems overseas.