P&G to invest US$100M in new Karawang, Indonesia, diaper factory, its first one in the country; construction to take two years before startup operations

Sandy Yang

LOS ANGELES , August 12, 2011 (Forestweb) – Proctor & Gamble Co. plans to invest US$100 million in the construction of a Karawang, Indonesia-based diaper factory, reported The Jakarta Globe on Aug. 10.

Construction of the first such P&G facility in the country will take two years before startup operations.

Within five years, P&G could supply diapers for approximately 8 million children, according to a company statement.

P&G Indonesia president director Mohamed Ismael said 17 million of the 240 million Indonesian population is younger than four years old, adding that the country is “an important market for the baby-care industry.”

The Indonesian economy grew 6.1% last year, and the government projects an additional 6.5% growth this year, influenced by strong consumption growth, low interest rates, lessening inflation, reported The Jakarta Globe.

P&G rival Unilever Indonesia will invest about $470 million to construct a manufacturing plant in Surabaya, Indonesia, in 18 months as well as an additional facility.

The primary source of this article is The Jakarta Globe, Jakarta, Indonesia, on Aug. 10, 2011.

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