P&G plans second Indonesian plant

Procter and Gamble is to invest US$100 million in a second manufacturing plant next to its new diaper factory in  Karawang, West Java in Indonesia which was inaugurated last week.

What will become the largest facility in Southeast Asia will manufacture multiple products and reflects the rise in incomes of consumers in Indonesia, where P&G already sells at least 11 of its main 25 global brands.

“We would not be building a factory if the numbers were not good,” said P&G vice chairman Dimitri Panayotopoulos. “Pampers diapers produced at the Karawang plant will be sold on the domestic market but we expect to export a considerable portion once we get the lines running well.”

Almost half of the infants currently in the world are in Asia and a third of them in just three countries – China, India and Indonesia.