Kao to Enhance Annual Surfactant Production Capacity by Building Plant at KIIC in Indonesia

Kao Corporation (President and CEO: Motoki Ozaki) announces that PT. Kao Indonesia Chemicals will construct a new plant at Karawan International Industry City (KIIC) located in the suburbs of Jakarta, Indonesia, and expand its production facilities. This plan aims at meeting increased demand for industrial products in Asia. The new plant site covers about 120,000 square meters, which is double the area of the production site currently being used. Construction will start in February 2012, and operations will be initiated sequentially from January 2013.

In this expansion, a new production facility for surfactants, Kaos main chemical product, will be built. This will increase annual surfactant production capacity (total capacity of newly-built and transferred facilities) by approximately 50% compared to current capacity. The new plant will produce surfactants used as raw materials for toiletries and chemical products for industrial use. The initial investment is estimated at over 4 billion yen. In consideration of energy saving and environmental impact mitigation, environment-related equipment, namely a gas cogeneration system, will be introduced in the new plant to reduce CO2 emissions. The transfer of all operations from the existing plant located at Tambun, a suburb of Jakarta, will be completed by the end of December 2014 and integrated with the new plant.

Demand for industrial products produced by Kao Indonesia Chemicals has been increasing both for domestic use in Indonesia and for export, in line with the growth of the Asian economy. While it is estimated that demand for chemical products for industrial use, including use in the toiletry fields, will further increase, the existing plant has nearly reached full operating capacity. As the current plant site area is insufficient for future expansion, Kao Indonesia Chemicals decided to transfer its production base to KIIC. The new site was selected due to its advantageous location and favorable infrastructures in relation to future expansion of production facilities.

With construction of the new plant, Kao Indonesia Chemicals aims to enhance and expand its function as a supply base for surfactants in the Asian market. By increasing production of chemical products for various industries, the company is further promoting its chemical business in growth markets.

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.