Sinar Mas Cepsa starts production in Indonesia

By Natasha Spencer

- Last updated on GMT

Sinar Mas Cepsa starts production in Indonesia
Wholly-owned joint venture, Sinar Mas Cepsa, begins manufacturing at its €300 mn vegetable-based alcohols plant in Indonesia.

The joint venture, between Cepsa and Golden Agri-Resources (GAR), announced on 15th September 2017 that is has inaugurated its first oleochemicals plant facility.

The company is formed of integrated energy company and leader in linear alkylbenzene (LAB) production for biodegradable detergent manufacturing, Cepsa, and member of the Indonesian consortium of Sinar Mas businesses and sizeable palm oil company, GAR.

Designed for global cosmetics

Located in Dumai, Sumatra, in Indonesia, the multi-million investment will produce fatty alcohols and acids from sustainably-sourced palm kernel oil for the Asian, Eastern and Western European markets.

These vegetable-based raw materials will be then be used to produce cosmetics and hygiene products.

Running the refinery

The self-sufficient plant will receive sustainable and traceable palm kernel oil from GAR's Lubuck Gaung-based refinery, which has been certified by the Roundtable on Sustainable Palm Oil.

Sinar Mas Cepsa gathered the investment over a period of two years and has pursued raw vegetable-based materials, as these are positioned as core ingredients in the cosmetics and personal care markets.

With an annual production capacity of 160,000 metric tonnes of fatty alcohol per year, Sinar Mas Cepsa anticipates that the new plant’s vegetable-based alcohol sales will chiefly target and supply the Asian marketplaces.

In addition, the facility will service demand from Sinar Mas Cepsa's surfactant plant in Germany, which equips the Eastern and Western Europe markets will vegetable-based alcohols.

Fatty alcohol expectations

The global market for fatty alcohols is expected to sit at 4.1 mn metric tonnes by 2025, indicating a five-year compound annual growth rate of 3.5%, Sinar Mas Cepsa reported in a recent press release.

This production plant follows the opening of Cepsa's facility in Shanghai in 2015, which made the company the second largest phenol producer in the world and positions it as a dominating natural ingredient producer in Asia.  

Officials and dignitaries from the Indonesian Ministry of Industry attended an inauguration ceremony held in Dumai, Sumatra, to mark its launch and encourage connections throughout Indonesia and the wider APAC area.

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