Michelin buys out shares in sustainable rubber joint venture
By Bradley Osborne - 9th July 2022
France / Indonesia – The Michelin Group, a tyre manufacturer based in Clermont-Ferrand, France, has acquired complete ownership of the shares in joint-venture firm Royal Lestara Utama (RLU) of Jakarta, Indonesia from energy company Barito Pacific Group, which previously held 51% of the shares (while Michelin held 49%).
RLU was launched by Michelin and Barito Pacific in 2015 to develop sustainable production of natural rubber over 70,000 hectares of land in Jambi province on the island of Sumatra and over 18,000 hectares in East Kalimantan province on the island of Borneo. These areas reportedly suffered from mass deforestation and unsustainable land use before RLU began operating.
