Porsche and Michelin support Indonesian rubber plantation farmers

By CARSIFU | 17 October 2021

STUTTGART: Porsche and Michelin are championing the sustainable extraction of natural rubber in Indonesia through the CASCADE (Committed Actions for Smallholders Capacity Development) project.

CASCADE is one of the first support projects in the world to start at the lowest level of the natural rubber supply chain.

The two long-term partners are supporting Sumatran small plantation farmers in the extraction of rubber.

The scheme will see 1,000 smallholders trained by local partners to make extraction methods more environmentally compatible and efficient.

This makes a considerable contribution to the lasting improvement of living conditions of smallholders and their families.

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Porsche and Michelin are investing around one million euros in the project, which will initially run until 2024.

To put Indonesia's natural rubber production in context, it's the second largest producer in the world after Thailand. In third place is Vietnam; Malaysia is ranked sixth.

Indonesia's rubber acreage includes the rural Jambi province.

Porsche and Michelin identified risks to the sustainability of the supply chain in rubber extraction using an app specially developed for this purpose and by conducting discussions with market participants in the area.

Rubber is used in many industrial products as a raw material. As an automotive manufacturer, Porsche also contributes to global rubber consumption through its tyres as well as in a wide range of vehicle parts.

"Smallholders form the heart of a sustainable supply chain for natural rubber. That's why we are supporting them to achieve a decent standard of living while adhering to good environmental and social practices.”
said Porsche AG procurement board member Barbara Frenkel.

“We are happy to be working with Porsche on this ambitious project," said Michelin chief procurement officer Hélène Paul.

"For almost 20 years, we have enjoyed a close partnership in the tyre business, which we are now also expanding to the area of sustainability.”