Sailun Group, one of the fastest-growing tire manufacturers in the world, has officially launched its new production facility in Demak, Central Java. The move marks a significant milestone in the company’s global expansion strategy and positions Indonesia as a key manufacturing hub in Southeast Asia. With substantial investment and advanced technology, the factory is expected to boost local industry and enhance regional competitiveness.
Key Facts & Background
- Company Profile:
- Founded in 2002, Sailun Group is ranked 10th largest tire producer globally (Tire Press 2024).
- Listed as the 11th most valuable tire brand worldwide (Brand Finance 2023).
- Operates in 180 countries, with nine factories and four R&D centers across Asia, Europe, and North America.
- Business Growth:
- Global sales surged from USD 296 million in 2008 to USD 3 billion in 2022.
- Offers 1,500+ tire variants for passenger cars, commercial vehicles, and specialized industries such as mining and agriculture.
- New Facility in Indonesia:
- Located in JIPS Industrial Area, Demak, Central Java.
- Managed by PT Sailun Manufacturing Indonesia, a subsidiary of Sailun International Holding.
- Investment value: USD 251.44 million.
- Production targets: 3.6 million PCR tires, 600,000 TBR tires, and 37,000 tons of OTR tires annually.
- Designed to serve both domestic demand and Asia-Pacific exports.
- Integrated Ecosystem:
- Sailun Indonesia also functions as a distribution and after-sales hub.
- Operated through PT Sailun Tire Indonesia with support from local partners.
- Product range includes PCR, TBR, OTR, TUBE, and FLAP, marketed under the “Made in Indonesia” spirit.
- Launch Event:
- Officially celebrated at the “Smart Manufacturing · Shared Success – Sailun Group Partners Conference”.
- Event marked the beginning of Sailun’s new growth chapter in Southeast Asia.
Strategic Insights
The establishment of Sailun’s factory in Demak underscores Indonesia’s rising importance in the global automotive supply chain. By investing heavily in production capacity and integrating distribution and after-sales services, Sailun is not only expanding its footprint but also reinforcing Indonesia’s role as a strategic hub for Southeast Asia. The facility’s dual focus on domestic supply and regional exports reflects a long-term commitment to balancing local market needs with international competitiveness.
For Indonesia, the investment brings tangible benefits in terms of job creation, industrial modernization, and enhanced participation in global trade networks. The presence of a major international manufacturer strengthens the country’s positioning in the automotive sector, while also encouraging technology transfer and supply chain integration. If managed effectively, this development could serve as a catalyst for broader industrial growth, supporting Indonesia’s ambition to become a leading player in Southeast Asia’s manufacturing and export economy.