Kao targets Asian demand for fatty alcohols with production capacity enhancement

By Andrew McDougall

- Last updated on GMT

Related tags: Philippines

Cosmetics company Kao will enhance its production capacity for fatty alcohols used in shampoos to reinforce its business, particularly in the Asian region.

The production capacity at Pilipinas Kao Incorporated (PKI) will be increased to approximately 1.4 times of current capacity to meet growing demand for fatty alcohols in the Asian region.

This production increase will reinforce Kao's supply system of oleochemicals for its downstream chemical business.

Rising demand

Construction for increasing production capacity is expected to be complete in August 2013, and the related investment is estimated at approximately 3 billion yen (€31m).

“The enhancement of production capacity at PKI is implemented to meet such rising demand for fatty alcohols,”​ says the Japan-based firm.

Demand for fatty alcohols is growing in the Asian region because of a wide range of applications such as use in shampoo and detergent for consumer use, as well as other applications.

Kao expanding facilities

With permission and authorization of the Philippine Economic Zone Authority, PKI is contributing to economic development in the Philippines by producing fatty alcohols there and exporting 90 per cent of its production.

In February 2012, Kao announced new plant construction at P.T. Kao Indonesia Chemicals, and, in June 2012, establishment of a new production company, Kao (Shanghai) Chemical Industries Co., Ltd., in the Jinshan district of Shanghai.

In addition, with this planned increase of production capacity for fatty alcohols at PKI, Kao is proactively promoting its investment in production facilities for its chemical business.

MarketEntry

Coming soon

Cosmetics Design is also targeting the rising demand in Asia-Pacific with the launch of a new site focused on the breaking news in the region.

CosmeticsDesign-Asia.com will be launched on September 4 2012 and will cover all the formulation, packaging and business news in the region.

The output of the new site will also focus on the key areas in the region such as market entry, regulation, animal testing, beauty from within, amongst others.

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