Yosun Tire to Invest 1.52 Billion RMB to Build Factory in Indonesia

Chinese tire industry makes another major move to go global. Shandong Yosun Tire and Rubber (Yosun Tire and Rubber) recently announced an investment commitment, planning to invest 4 trillion Indonesian Rupiah (approximately 1.52 billion Chinese Yuan), to build local production facilities in the Batang Industrial City Special Economic Zone, Central Java Province. This is yet another Chinese tire company investing heavily in Indonesia, following Zhongce and Sailun.

Building Factory and Setting Up Headquarters, Targeting Global Exports

According to the plan, the project covers 40 hectares and is expected to absorb about 4,000 local laborers. The factory mainly serves the export market, and the production base after landing will also serve as the regional headquarters of Yosun in Indonesia.

Company General Manager Weng Jisheng (Weng Jisheng) stated that Indonesia has huge development potential. The location of the Batang Industrial City Special Economic Zone is advantageous, and the industrial ecosystem continues to grow, making it an ideal base for the enterprise to expand business and open up the export market.

Behind this massive investment is Yosun's long-prepared strategic upgrade. In July 2026, the company's registered capital doubled from 50 million yuan to 100 million yuan, and it established the Hainan Oumao Investment subsidiary to build a global capital platform. Its related enterprise Youyue Rubber holds a provincial key tire project worth 5.16 billion yuan, with a planned annual output of 15 million sets of high-performance tires. In the first four months of 2026, Yosun's output value soared by 190% year-on-year, 70% of products were exported overseas, and capacity and export strength became its biggest trump cards for going global.

Giants Cluster, Indonesia Becomes a Must-Fight Territory

Yosun's entry is just a microcosm of the wave of Chinese tire makers going global. Currently, several domestic top enterprises have gathered in the Indonesian market, increasing capital, expanding production, and building new factories have become the norm.

Zhongce Rubber has the earliest layout and the most complete chain. In December 2024, the first phase of the Indonesian factory was put into production, covering full-chain sectors such as truck and bus tires, two-wheeler tires, and carbon black production. The main construction of the second phase project is entering the finishing stage, steadily expanding its regional leadership advantage.

Sailun Tire continues to increase investment. In 2025, the Indonesian project investment was adjusted from 1.749 billion yuan to 2.085 billion yuan. In 2026, it further optimized the product structure, covering multi-category radial tires and off-road tires, using Indonesian port logistics advantages to compress costs and deepen the incremental market.

Cheng Shin Rubber expanded production continuously for six years, from increasing capital by 196 million yuan in 2020 to over 130 million yuan in 2026. It focuses on motorcycle tires and tubes, radiating the entire Southeast Asia from Indonesia as the center.

Yuanxing Rubber is the latest entrant. In July 2026, it officially started the construction of the new factory in Indonesia, also landing in the Batang Industrial Park. The construction period is 300 days. Relying on the local stock of 137 million motorcycles, it focuses on the essential market for motorcycle tires.

SEZ Becomes Hub for Chinese Investment

This investment will further strengthen the manufacturing strength of the Batang Industrial Economic Special Zone and improve the local automotive industry ecosystem. This economic zone located in the northern part of Java Island welcomed the landing of Chinese Lithium Iron Phosphate Battery enterprise LBM New Energy (LBM New Energy) in the second half of last year. The first phase investment is 1.5 trillion Indonesian Rupiah, covering 31.72 hectares, expected to create 1,000 local jobs. In addition, Chinese investment projects in the fields of outdoor furniture, eco-friendly yarns, etc., are also continuously expanding into this area.

Going Global is the Trend, Localization is Key

In the background of intensified domestic market competition and increased foreign trade barriers, going global with localization has become the necessary path for tire enterprises to break through growth bottlenecks. However, industry insiders remind that the extensive growth dividend period of the Indonesian market is disappearing. In the future, only enterprises that truly achieve comprehensive localization of production capacity, brand, and supply chain can stand firm in fierce competition.