Michelin acquires 80pc stake in Indonesia’s Multistrada

Michelin has acquired an 80 per cent stake in Indonesian tyre manufacturer Multistrada, in a deal worth around €426 million.

The acquisition of Multistrada provides Michelin with access to a plant capable of an annual production of 11 million passenger car tyres, nine million two-wheel tyres, and 250,000 truck tyres.

Michelin says it will shift production from Tier 3 tyres to Tier 2 brands and utilise the facility to support global demand in Europe, North America, and Asia.

In addition to the manufacturing deal, Michelin will acquire a 20 per cent stake in local tyre retailer, PT Penta Artha Impressi.

Jean-Dominique Senard, CEO of Michelin, 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.”