The Japanese chemicals and cosmetics company has invested in the chemical side of its business to harness its delivery to several key industries including personal care products such as soaps and body cleansers.
As part of its comprehensive plans to maximise its market share both in Asia-Pacific (APAC) and around the world, Kao will build a new manufacturing facility in the Philippines for HCA (Hexyl Cinnamic Aldehyde) that is an aroma chemical in the jasmine floral scents.
In Asia, demand for the consumer goods fragrances sector is rising, with personal care shoppers opting for floral aroma chemicals.
Positioning chemical arm
Since 1979, the Philippines has been the production location of choice for Kao’s natural alcohols for the fragrance industry. The new plant will continue this strategic preference, with the HCA facility sitting adjacent to the existing production units.
With a capacity of 5,000 metric tonnes per year, the facility is expected to deliver the HCA chemical to all relevant industries within the Asia. Alongside Kao’s existing HCA production facility in Spain, Europe, the new build will make the Japanese supplier the largest HCA producer in the world.
The plant will begin operations in the second half of 2018.
In its 2017 Integrated Report, Kao details its mid-to-long-term strategy. The plan outlines Kao’s focus on highlighting the different brand values and goals of its Sofina and Kanebo labels, along with increasing its delivery of the HCA chemical to a wide range of sectors including the personal care industry.
As part of its wider initiative, Kao will seek to make investments and strategic moves that reflect its main growth areas. These are in the fields of hygiene and health, as well as global expansion plans, and campaigns that directly appeal to the ageing population — a key feature of the Japanese marketplace.