Sailun Group has officially launched tyre production at its new factory in Demak City, Central Java, Indonesia, reinforcing its commitment to international expansion. The facility produced its first passenger car radial tyre on 28 May 2025, following a groundbreaking ceremony held on 17 September 2024. This marks the company’s fourth overseas manufacturing site and a significant step in its Southeast Asia strategy.
The Indonesian facility is designed to produce:
Sailun’s decision to invest in Indonesia aligns with a broader trend among Chinese tyre makers seeking regional diversification. Indonesia offers several advantages for tyre production:
The facility strengthens Sailun’s global manufacturing footprint, complementing existing overseas plants in Vietnam and Cambodia. It also supports broader plans to scale production capacity, with additional investments underway in Mexico.
Indonesia is becoming an important manufacturing destination in the tyre sector. Sailun joins other Chinese manufacturers, including ZC Rubber, that have recently committed to Indonesian projects. These moves highlight the region’s role as a key node in the global supply chain, particularly for passenger and commercial vehicle tyres.
Sailun’s Indonesian factory launch illustrates how global tyre makers are building regional production networks to enhance supply chain resilience. For the UK and European aftermarket, this could mean more consistent availability of mass-volume tyre lines and potential improvements in lead times. It also reflects a wider shift towards decentralised production, which is shaping the future of tyre manufacturing across passenger, OTR, and commercial sectors.
Tagged with: Sailun, Indonesia tyre factory, Demak City, tyre manufacturing investment, passenger car tyres, OTR tyres, Southeast Asia production, global tyre supply chain
Disclaimer: This content may include forward-looking statements. Views expressed are not verified or endorsed by Tyre News Media.
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