Shandong Group builds tire plant worth US$500 million

 Shandong Group, one of big manufacturers from China, partners with PT Vorich Wealth Indo, a subsidiary of Mulia Genta Group, is building a new truk and bus tire plant in Karawang, West Java worth US$500 million.

Budi Purnama, President Director of Vorich Wealth Indo said Shandong will soon build the plant in an area of 23 ha located in Karawang starting this November and will be completed in February 2014.

“The intial investment is about US$270 million, while total investment reaches US$500 million,” he said Friday (10/12).
According to, the composition of shareholding are Shandong O’Green Tyre Co Ltd (Shandong Group), of 75% and Vorich Wealth of 25%.

“In the future, the composition will be increased to be 50:50,” said Budi Purnama.

The collaboration of both companies is expected to be automotive leader in national and international market.

Wang Zie Rong, President Director of Shandong Group, added that the company wants to cooperate with local company since the world has recognized Indonesia which has qualified natural rubber, good human resources and supporting natural condition.

“Thus we decided to invest in Indonesia,” said Wang.