Unilever builds new plant

The Jakarta Post, Jakarta | Fri, 12/05/2008 11:39 AM  

PT Unilever Indonesia, the local subsidiary of the London-Rotterdam-based consumer goods giant, has announced the start-up of Asia's biggest plant for skin care products in Cikarang, representing an investment of Rp 500 billion (US$42.5 million). 

While many local industries are cutting output, with layoffs following suit in some cases, Unilever's announcement should provide some respite amid a gloomy global economic outlook as it plans to hire 1,000 new workers to run the new plant. 

The factory has a total production capacity of 53,000 tons of skin care products per year and occupies 10 hectares of land with 22,500 square meters of buildings, president director Maurits Lalisang said in a statement Thursday. 

"The plant was expected to help the company in meeting the growing demands for national and export markets," Maurits said. 

The plant would help the company in not only fulfilling local market demand, which has been growing at an average of 10 percent annually, but also will help meet overseas demand including for markets in Singapore, Thailand, Malaysia, the Philippines, India and Vietnam. 

"It proves that Indonesia is still an interesting investment location with good potential. It is expected that the new factory can help project a positive view of the Indonesian investment climate in this global economic downturn," Maurits said. 

The new factory pushes the total number of company plants operating in the country up to eight. 

The new plant will produce Unilever's popular skin care branded products, such as Citra, Vaseline, Pond's, Dove, Lux and Lifebouy. 

Unilever is also the producer of other market-leading brands both locally and regionally including Pepsodent, Sunsilk, Rexona, Rinso, Molto, Blue Band and others. 

The company's net profit rose 29.7 percent to Rp 2.05 trillion in the first nine months of this year from Rp 1.58 trillion in the same period last year on the back of higher sales. 

Its sales went up 22 percent to Rp 11.76 trillion during that period. 

The company started operation here in 1933.