Japanese consumer and chemical product maker Kao Corp. recently opened a fatty acid factory in Indonesia’s Sumatra Island. (Photo: nna.jp)

Tokyo (VNA) – Japanese consumer and chemical product maker Kao Corp. recently opened a fatty acid factory in Indonesia’s Sumatra Island to expand its chemical business, Kyodo News reported.

Kao said on May 13 that PT. Apical Kao Chemicals, a joint venture with Apical Group Ltd., is making fatty acids for stable supply to its downstream production bases and client overseas.

Kao and Apical Group invested some 80 million USD to open the new plant with annual output capacity of about 100,000 tonnes.

Apical Group supplies materials for fatty acids, Kao spokesman Ryota Ogawa said.

The joint venture, set up in 2017 with initial capital of 25 million USD, is 65 percent owned by Apical Group, an oil, fats and derivatives producer headquartered in Singapore, and the remaining 35 percent by Kao.

Kao has operated factories in Malaysia, the Philippines, Thailand and many other ASEAN countries to produce household products like shampoos and detergents. The establishment of the production base in Indonesia will help the Japanese firm enhance its self-sufficiency.-VNA