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Unilever Indonesia to Invest $500 Million in Production Expansion

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Tue, 13 Jun. 2017
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    Indonesia Investments

Unilever Indonesia, one of the largest consumer goods producers in Indonesia, will continue to focus on the strengthening of its production lines. The company plans to invest up to USD $500 million over the next five years. Sancoyo Antarikso, ‎External Relations Director & Corporate Secretary at Unilever Indonesia, said the funds will be used to expand production capacity of the company’s nine factories across Indonesia.

The USD $500 million that is planned to be invested by Unilever Indonesia over the next five years will primarily be spent on the production capacity expansion programs of the company’s two main business segments: (1) home and personal care, and (2) food and refreshment.

Last year, in 2016, Unilever Indonesia opened a palm oil processing plant in the special economic zone of Sei Mangkei in North Sumatra, a project that required IDR 2 trillion (approx. USD $150 million) worth of investment. This plant, operated by subsidiary Unilever Oleochemical Indonesia, can process 200,000 tons crude palm kernel oil per year (turning it into fatty acid, glycerine, and soap noodle). This plant is a key milestone for the company because it is eager to make sure that all palm oil-related raw materials originate from certified palm oil.

Considering Indonesia’s economic growth is estimated to accelerate in 2017 and beyond, which implies strengthening consumer purchasing power, there should be plenty of opportunities for further growth. In fact, shares of Unilever Indonesia still managed to grow during Indonesia’s 2011-2015 economic slowdown, reflected the fundamental strengths of the company. Unilever Indonesia is also among the biggest companies in terms of market capitalisation on the Indonesia Stock Exchange.

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