Michelin announced it has signed an agreement to acquire 80% of PT Multistrada Arah Sarana TBK - a tire manufacturer based in Indonesia.

With a production capacity of more than 11 million passenger car tires, nine million two-wheel tires and 250, 000,000 truck tires, Multistrada generated net sales of US$ 281m in 2017. With this acquisition, Michelin will increase its presence in the local production-dominated Indonesian market by acquiring a competitive local plant with good quality facilities and immediately available production capacity.

Michelin will gradually convert production from Tier 3 passenger car tires to Tier 2 Michelin brands, thereby enabling more Tier 1 production at other Asian plants and supporting growth of demand of Tier 2 volumes in Europe, North America and Asia. Michelin will also acquire a 20% stake in the retailer PT Penta Artha Impressi in partnership with Indomobil and private investors, which will boost the marketing and sales of Michelin brands in Indonesia. Jean-Dominique Senard, chief executive officer of the Michelin Group, said, "The acquisition of Multistrada represents an excellent opportunity for Michelin to expand its operations in Indonesia, the most populous country in Southeast Asia, and immediately gain competitive, good-quality production capacity without having to create any new manufacturing facilities".