ZC Rubber starts commercial production at Indonesia tire plant

Semarang, Indonesia – Zhongce Rubber Group (ZC Rubber) has officially started production at its new Indonesian tire manufacturing plant, PT. Matahari Tire Indonesia (MTI) in Kendal Industrial Park, Central Java.

The unit is ZC Rubber’s second overseas plant and was built with an investment of $280 million (€270 million), the Chinese group announced 19 Dec.

Spanning 500,000 sq.m., the facility is equipped to produce a wide range of products, including truck and bus tires, two-wheeler tires and bias tires.

In addition to tires, the unit also produces inner tubes, tracks, and carbon black.

The Chinese group did not provide further details about the production capacity of the Semarang unit, which was constructed in under a year.

Once fully operational, ZC Rubber expects to generate an annual revenue of $720 million from the facility.

The unit, according to Shen Jinrong, chairman of ZC Rubber Group, will play an important role in the group’s global strategy, serving as a “cornerstone” for its growth in key markets.

“Our goal for MTI is to strengthen its core competitiveness, ensure high-quality product supply, and continuously expand its industry chain,” said Shen Jinrong.

“We aim to deepen collaboration across all levels… and establish a solid strategic foundation for the company’s global development,” he added.