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P&G to build second plant as domestic demand rises
Anticipating the growing demand for consumer goods in Indonesia, American multinational company Procter & Gamble (P&G) says it will invest US$100 million in a second plant next to its new unit in Karawang, West Java
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nticipating the growing demand for consumer goods in Indonesia, American multinational company Procter & Gamble (P&G) says it will invest US$100 million in a second plant next to its new unit in
Karawang, West Java.
'P&G is making another $100 million investment to build world-class manufacturing facilities in Karawang,' PT Procter & Gamble Home Products Indonesia president director, Bert Wouters, said on Thursday.
He made the statement during the inauguration ceremony of the latest $100 million plant in Karawang, which will produce diapers.
Wouters said the second factory, once completed, would make P&G's Karawang plant the company's largest facility in Southeast Asia. 'The facility sits on 30 hectares of land. The first plant measures around 7 hectares while the second will measure 23,000 square meters,' he said.
According to him, the second plant will produce 'multiple products'. He declined to go into details.
Wouters said P&G already marketed at least 11 of their main 25 global brands in the domestic market. The brands fall under four main categories: health and grooming, paper products, beauty care and home care. Products currently available here include Pantene, Head & Shoulders, Olay, SK II and Gillette, with Downy being one of the latest additions.
'We tend to offer different kinds of products in different price brackets. And consumers in Indonesia are moving up into higher product brackets as they gain more disposable income,' he said.
P&G vice chairman and advisor to the chairman and CEO, Dimitri Panayotopoulos, added that the large number of babies in the country had driven sales of Pampers in the country. 'We would not be building a factory if the numbers were not good,' he said.
He added that P&G sought to export a considerable portion of the Pampers baby diapers manufactured in Karawang once they 'get the lines running well'.
Besides Indonesia, P&G also manufactures Pampers in countries such as Japan, which is where Pampers products in Indonesia initially came from.
