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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

Mariel Grazella (The Jakarta Post)
Jakarta
Fri, December 6, 2013 Published on Dec. 6, 2013 Published on 2013-12-06T12:46:48+07:00

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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.

'€œP&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. '€œThe 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 '€œmultiple 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.

'€œWe 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. '€œWe 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 '€œget 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.

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