Kao Indonesia to Build a Second Plant to Meet Rising Demand

- Investing about 10 Billion Yen for New Plant Construction -

Kao Corporation (President and CEO: Michitaka Sawada) announces construction of a second plant for PT Kao Indonesia at Karawang International Industrial City (KIIC), located in the east of Jakarta, Indonesia. This new plant project aims to reinforce Kao's stable supply system, as the company is anticipating active and increasing demand for daily-use products in the Indonesian market on the back of rapid economic growth in the country. The second plant site covers about 140,000 square meters, which is 1.6 times larger than the area of the existing plant. Construction will start in October 2012, and operations are scheduled to begin at the end of 2013.

The Cikarang plant, now in operation, has almost reached its capacity. Moreover, as the current plant site area is insufficient for future expansion, Kao decided to expand its production base. With completion of construction of the second plant at KIIC, Kao Indonesia will increase production capacity for laundry detergent and sanitary napkins. At the same time, Kao Indonesia will be capable of meeting future business expansion, particularly for disposable diapers.

In the fields of cleanliness, beauty and health, Kao continues to propose satisfaction and enrichment of the lives of people globally by supplying products while realizing profitable growth on a global basis. Kao positions Asia and the ASEAN region-particularly growing countries such as Indonesia, China and Vietnam-as very important to its strategy and will actively promote business expansion in these areas. Construction of the second plant is in line with the strategy. Investment for the new plant, including land and new facilities, will amount to approximately 10 billion yen.

In building a second plant of Kao Indonesia adjacent to a new chemical plant of PT Kao Indonesia Chemicals that is now under construction for production of surfactants (materials used for toiletries) and industry-use chemical products, Kao Indonesia aims to achieve efficient production operations.

Outline of PT Kao Indonesia

Corporate name: PT Kao Indonesia
Established: 1985
Representative: Atsushi Koizumi, President
Investment: Kao Corporation and PT Rodamas
Business: Production and sale of products including laundry detergent, sanitary napkins, body cleanser and facial cleanser

Kao Indonesia launched Biorテゥ facial cleanser in 1985, Biorテゥ body cleanser in 1987, Laurier in 1989, and Attack in 1992. This year the company plans to start importation and marketing of Merries disposable diapers.

For reference:
Location of the second plant: Karawang International Industrial City, Karawang, West Java, Indonesia
(Approximately 56 kilometers from the center of Jakarta)

About Kao

Kao creates high-value-added products to help consumers around the world enrich their everyday lives. Over 20 leading brands such as Asience, Attack, Bioré, Goldwell, Jergens, John Frieda, Kanebo, Laurier, Merries and Molton Brown are part of the lives of people in Asia, Oceania, North America and Europe and help generate about 1,200 billion yen (about $US13 billion) in annual sales. Kao employs about 35,000 people worldwide and has more than 120 years of history in innovation. Please visit the Kao group web site for updated information.