Royal Lestari Utama and KIRANA Sign Important Tolling Agreement

In April 2024, Royal Lestari Utama (RLU) and KIRANA signed a tolling agreement, and this contract is a pivotal step in the new RLU strategy.

Under this agreement, RLU commits to delivering its entire cuplump production from its subsidiaries in Jambi, Wanamukti Wisesa (WW) and Lestari Asri Jaya (LAJ), to KIRANA's advanced facility in Muara Bungo. RLU retains ownership of the raw materials throughout the process, entrusting KIRANA with the transformation.

Transforming Cuplumps into Natural Rubber

At KIRANA, our cuplumps undergo meticulous processing, resulting in high-quality natural rubber. RLU maintains ownership of the finished products. This collaboration improves our operational capabilities and underscores our commitment to sustainable practices. By working closely with KIRANA, we ensure our natural rubber meets the stringent standards required by Michelin Group, the ultimate beneficiary of our product.

The tolling agreement secures several advantages for all parties involved. For RLU, it ensures exclusive supply to the Michelin Group, guaranteeing good quality and compliance with the latest European regulations against deforestation. This exclusivity strengthens our partnership with Michelin and reinforces our dedication to sustainable practices.

We extend our gratitude to all teams at Michelin who have been essential in realizing this innovative project.