Japan’s Oji Holdings Corporation is to build a new disposable diaper factory in Malaysia following its 80% share acquisition of the established local manufacturer People & Grit. 

With a population of more than 600 million people and more than ten million newborn babies every year Southeast Asia has been enjoying a high annual GDP growth rate of more than 5%. The disposable diaper market is anticipated to grow further in terms of demand and Malaysia is geographically positioned at the heart of the region. 

Oji Group views this market as a priority business field and in April this year began manufacturing and selling of disposable diapers in Indonesia through a joint venture with PT Indofood CBP Sukses Makmur.

People & Grit was established in 2002, employs 70 people and had sales in the year to the end of June 2014 of almost $16 million.

Oji’s new diaper plant in Malaysia is scheduled to start operations in November 2015.