The new facility, estimated to cost over 4bn yen (€39m) initially, will be built at Karawan International Industry City (KIIC), located in the suburbs of Jakarta, Indonesia, and aims to meet increased demand in Asia.
The new plant site covers about 120,000 square metres, which is double the area of the production site currently being used.
In line with growth
Demand for industrial products produced by Kao Indonesia Chemicals has been increasing both for domestic use in Indonesia and for export, according to the company, in line with the growth of the Asian economy.
While it is estimated that demand for chemical products for industrial use, including use in the toiletry fields, will further increase, the existing plant has nearly reached full operating capacity.
With no potential to further expand at this site, Kao Indonesia Chemicals decided to transfer its production base to KIIC due to its favourable infrastructures in relation to future expansion of production facilities.
Promoting chemical business
“With construction of the new plant, Kao Indonesia Chemicals aims to enhance and expand its function as a supply base for surfactants in the Asian market. By increasing production of chemical products for various industries, the company is further promoting its chemical business in growth markets,” said a company statement.
The expansion will increase annual surfactant production capacity by approximately 50 per cent compared to current capacity.
The new plant, which will go under construction this month, will be completed by the end of 2014 with all operations being transferred from the current plant in Tambun, a Jakarta suburb.