Kao Corporation is building a second plant in Indonesia to help meet demand in the region. According to executives, the 140,000-square-foot plant will make laundry detergent and sanitary napkins initially and will ultimately make disposable baby diapers for the Indonesian region. Construction is set to begin in October and will be complete in late 2013. The total investment for the project has been reported at ¥10 billion ($128 million).
The Japanese producer of a wide range of disposable hygiene products and other consumer goods already has a plant in Cikdarang, Indonesia, which is operating near full capacity. The second plant will be located in Karawang International Industrial City (KIIC), east of Jakarta. The two plants will help Kao expand in the ASEAN rgion, which is being seen as an important growth area by the company. In particular, Indonesia, China and Vietnam are central to the company's growth strategy in the region, according to executives.