Sailun Group Embarks on Major Expansion with New Facility in Indonesia

Sailun Group, has recently announced a visionary expansion plan. The establishment of a new, cutting-edge manufacturing facility in Indonesia marks a pivotal moment in Sailun's journey towards innovation, growth, and the provision of superior tire products worldwide.

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Sailun Group
Published on
March 13, 2024

The New Manufacturing Facility in Indonesia

With a substantial investment of US$251.44 million, Sailun's new plant situated in Demak, Central Java, is set to revolutionize its production capabilities. This facility is designed to produce 3 million semi-steel radial tires, 600,000 all-steel radials, and 37,000 tonnes of OTR tires annually, significantly broadening Sailun's product range and reinforcing its leadership in the tire industry.

Impact on Sailun Group's Market Position

This strategic move is not just about expanding Sailun's manufacturing capabilities; it's about enhancing its global footprint and responding to the surging demand for high-quality tires in both regional and international markets.

Economic and Employment Contributions

The project promises to create up to 807 job opportunities, highlighting Sailun's commitment to the local economy's growth. It underscores the company's role in stimulating economic development and providing valuable employment in Central Java.

Strategic Importance of the Indonesian Facility

David Oliva, Marketing Manager at Sailun, emphasizes the project's significance, stating, "This initiative showcases our dedication to excellence and our aim to fulfill the varied needs of our customers globally."

Project Financing and Financial Outlook

The funding strategy, balanced between Sailun's resources and bank loans, reflects prudent financial planning. With an expected annual operating income of $270.21 million and a net profit margin of 24.76%, the project's financial health appears robust.

Sailun's Commitment to Innovation and Quality

Sailun's unwavering commitment to innovation and quality is evident in its strategic decisions and investments. This new facility in Indonesia is a testament to the company's dedication to leading the tire manufacturing industry by example.

Global Presence and Future Prospects

As the 12th largest tire maker globally, Sailun's expansion into Indonesia is a significant step in its global strategy. This move not only aims to solidify its presence in the Indonesian market but also to cater to the growing global demand for quality tires.


What is the investment scale of Sailun Group's new facility in Indonesia?
Sailun Group has committed to investing US$251.44 million in establishing a state-of-the-art manufacturing facility in Demak, Central Java. This investment underlines Sailun's dedication to innovation and global expansion.

What are the expected production outputs of the new manufacturing facility?
The new facility is designed to produce 3 million semi-steel radial tires, 600,000 all-steel radials, and 37,000 tonnes of OTR (off-the-road) tires annually. This expansion aims to enrich Sailun's product offerings and fortify its position in the global tire manufacturing industry.

How does the Indonesia expansion align with Sailun Group's global strategy?
The establishment of the new manufacturing base in Indonesia is a strategic move to enhance Sailun's presence in the Indonesian market and to meet the increasing demand for high-quality tires in regional and global markets. This expansion aligns with Sailun's global expansion strategy and its commitment to being at the forefront of the tire manufacturing industry.

What economic benefits does the new facility bring to the local community?
The new plant is expected to create employment for up to 807 individuals, with 787 roles in production. This significant job creation showcases Sailun's commitment to contributing positively to the local economy and supporting community development in Central Java.

What is the financial outlook for the Indonesia project?
The project is expected to generate an average annual operating income of $270.21 million, with a net profit of $66.89 million. The net profit margin is anticipated to be an impressive 24.76 percent, with a project payback period of 4.88 years, indicating the project's financial health and viability.

How will the new facility impact Sailun Group's market position?
This expansion is expected to significantly bolster Sailun's market share in the Indonesian tire industry and enhance its position as a leader in the global tire manufacturing sector. By increasing production capabilities and meeting the demand for high-quality tires, Sailun is set to strengthen its market presence and competitive edge.

What measures are being taken to ensure the quality of production at the new facility?
Sailun Group is renowned for its commitment to quality and innovation. The new manufacturing facility in Indonesia will adhere to stringent quality control measures and incorporate the latest technology and processes to ensure the production of high-quality tire products.

When is the new manufacturing facility expected to be operational?
The project is on a fast track, with completion targeted within 21 months from its announcement. This ambitious timeline demonstrates Sailun Group's commitment to quickly scaling its production capabilities to meet global demands.

Sailun Group's expansion in Indonesia represents a significant milestone in its quest for growth and innovation. By enhancing its production capabilities and affirming its commitment to quality, Sailun is poised to maintain its leadership in the tire manufacturing industry, delivering unmatched value to its customers and stakeholders.

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