Michelin buys 51% of Royal Lestari Utama (RLU), a pilot project developing sustainable rubber tree plantations in Indonesia Becoming the sole owner of RLU, the Michelin Group is reasserting its ambitions and long-term commitment towards the production of sustainable natural rubber and towards the improvement of living standards for local communities. June 21 2022 Imprimer The Michelin Group would like to thank the Barito Pacific Group for its contribution to the project since its inception. Becoming the sole owner of RLU means Michelin will continue investing in a demanding but remarkable long-term project which combines social dimension, environmental protection and economic performance. We are proud of the actions carried out with our Indonesian partner Barito Pacific since 2015 and are confident in RLU’s future and its ability to support the transformation of the natural rubber sector in Indonesia while improving living standards and preserving forests and ecosystems. Vincent Rousset-Rouvière, Purchasing Director of the Michelin Group Michelin is becoming the sole owner of RLU Michelin, which previously held 49% shares, has bought a further 51% of the capital of Royal Lestari Utama (RLU), a joint venture with Barito Pacific Group, thus becoming the sole owner of RLU. The project, which was launched in 2015, aims at creating the right conditions for the production of sustainable natural rubber over a wide area of 70,000 hectares in Sumatra, in the Jambi province, and 18,000 hectares in Borneo, in the East Kalimantan province. These territories suffered great damage and deforestation before Michelin and its Indonesian partner got involved. With the takeover, the Group reasserts its trust in the project and the long-term vision it requires. The substantial work carried out since 2015, which has been widely documented, has led to a number of social and environmental improvements. For nearly six years, after significant preparation work, rubber trees were planted over more than 23,000 hectares, and 39,000 hectares were preserved to develop agroforestry activities and subsistence agriculture. The project also includes a social dimension, consistently aiming at improving living standards for 50,000 inhabitants, with the creation of 4,000 jobs and the training of farmers to hevea growing and crop diversification. Learn more : Royal Lestari Utama (RLU) A long-term commitment from Michelin for the entire natural rubber sector The Group has invested over a billion euros in its various business since 2015 in Indonesia. For Michelin, this project is a significant long-term opportunity to contribute actively towards making the natural rubber sector more sustainable. Discover: The new Michelin website, dedicated to natural rubber Despite these major improvements, Michelin is fully aware of the difficulties faced by a project of this magnitude. The natural rubber value chain is highly complex and fragmented and there is still much to be done on the commercial, environmental and social fronts. Mobility solutions to guarantee access to essential services Read more Over 50 per cent sustainable materials in tires: Michelin has done it! Read more
