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Clariant inaugurates new production facilities in Tangerang
Better business: Hariolf Kottmann (left), CEO and chairman of the executive committee at Clariant Ltd
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Better business: Hariolf Kottmann (left), CEO and chairman of the executive committee at Clariant Ltd., a company that produces specialty chemicals, chats on Thursday with Swiss Ambassador Heinz Walker Nederkoorn at the inauguration event for the companyâs site expansion, which is located at the Kali Sabi industrial area in Tangerang, West Java. Clariant improved facilities and infrastructure in an effort to increase production at the plant. (JP/R. Bertho Wedhatama) (left), CEO and chairman of the executive committee at Clariant Ltd., a company that produces specialty chemicals, chats on Thursday with Swiss Ambassador Heinz Walker Nederkoorn at the inauguration event for the companyâs site expansion, which is located at the Kali Sabi industrial area in Tangerang, West Java. Clariant improved facilities and infrastructure in an effort to increase production at the plant. (JP/R. Bertho Wedhatama)
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span class="inline inline-none">Better business: Hariolf Kottmann (left), CEO and chairman of the executive committee at Clariant Ltd., a company that produces specialty chemicals, chats on Thursday with Swiss Ambassador Heinz Walker Nederkoorn at the inauguration event for the company's site expansion, which is located at the Kali Sabi industrial area in Tangerang, West Java. Clariant improved facilities and infrastructure in an effort to increase production at the plant. (JP/R. Bertho Wedhatama)
Clariant Indonesia, part of the major specialty chemical producer Clariant, officially inaugurated Thursday new production facilities at the company's factory in Tangerang, West Java.
Hariolf Kottmann, the chief executive officer of Switzerland-based Clariant Ltd., said that the company spent about US$15 million on the construction of the new facilities, which had doubled the production capacity of its specialty chemical products such as master batches and pigment widely used for coloring purposes.
With the expansion of the production facilities, Clariant would be able to meet surging demand for such specialty chemical products from both domestic and overseas markets, Kottmann said.
He also hoped the increase in the production would enable the company to meet its global earnings growth target of between 16 percent and 19 percent next year from 14 percent last year.
Kottmann underlined the strategic significance of the investment during the opening ceremony.
'The future of Clariant will be decided in Asia and we see Indonesia as a focal point for our sustainable growth in the SEA&P region,' he said.
'The investments in production capacity, product range and service enhancements demonstrate our belief in Indonesia's potential and its market growth, and our commitment to better support the strong demand in local and overseas market.' Clariant has three main business units in Indonesia.
The first is Clariant Indonesia, which operates its production facilities in Tangerang and Cilegon, both in Banten.
The second is Clariant Kujang Catalyst, which has a production site in Cikampek, West Java.
The last one is PT Clariant Absorbents Indonesia, which has production facilities in Medan, North Sumatra, and in Cileungsi and Cimapag, both in West Java.
The production capacity of all the six sites in 2013 was 300,000 tons per year, according to the statement.
When asked about the sales target after the expansion, he said that he could not disclose the exact target, but stated that sales performance remained below expectation.
'The contribution of this country to the overall sales worldwide is below the level necessary from our point of view,' Kottmann said.
Clariant Indonesia country head Hans Gert Herrel added that currently Clariant Indonesia were distributed about 70 percent of its total production to the domestic market and the rest was for export.
Clariant still relied on imported raw materials because the upstream chemical industry was under developed.
Kottmann said that in the upcoming years, Clariant would focus on developing its global operations in Asia, particularly China, India and Indonesia.
According to him, Clariant had started to shift the majority of its capital expenditure since last year to Asia.
'About 60 percent of Clariant's budget for expansion will be spent in Asia, particularly in China, India and Indonesia,' he added.
He said that the company's operations in emerging markets including China, India and Indonesia, contributed about 50 percent to its global sales, which reached 6 billion Swiss franc (about $6.6 billion) last year.
Besides expanding its overseas production facilities, Clariant also continued to increase its spending for research and development as a strategies to further strengthen its foothold in the global market.
He also hoped in the future Clariant would also build a research and development center in Indonesia. (ask)
