Idemitsu Constructs New Lubricant Manufacturing Facility in Indonesia

Indonesia: Engine Oils Idemitsu Constructs New Lubricant Manufacturing Facility in Indonesia

14.11.2019Editor: Ahlam Rais

With an annual production capacity of 50,000 KL, the new Cikarang plant will expand the supply of lubricants due to the increasing demand for high-performance lubricants in Indonesia. The new unit is the firm’s second lubricant manufacturing facility in the country.

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Exterior view of the Cikarang plant.
(Source: Business Wire)

Tokyo/Japan – Idemitsu Lube Techno Indonesia, an Indonesian subsidiary of Idemitsu Kosan Co. established a new lubricant manufacturing plant (Cikarang) with an annual production capacity of 50,000 KL in Bekasi, Indonesia. The aim of the new unit is to augment the supply owing to the increase in demand for high-performance lubricants in Indonesia. The inauguration ceremony was held on November 7.

The Cikarang plant will manufacture mostly engine oil for initial filling of motorcycles and automobiles and OEM replacement products (partner brand production) utilising the latest production facilities.

Indonesia has the world’s fourth largest population, and the company is expecting a steady growth in demand. The existing first plant (The Karawang plant, annual production capacity: 65,000 KL; started production in 2005) is situated in the Karawang International Industrial City, where many related Japanese enterprises have their offices.

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Due to there being no expansion room in this area, the new second plant was established in Bekasi Regency, which is near the Karawang plant. The establishment of the Cikarang plant makes for a total annual production capacity of 115,000 KL in Indonesia by Idemitsu. The Cikarang factory is the seventh lubricant manufacturing plant directly managed by the firm, Idemitsu, overseas.

Idemitsu Lube Techno Indonesia was founded on the investment of Idemitsu’s local partner, Atlas Petrochem Indo in 2004, and supplies productions to Idemitsu Lube Indonesia, the firm’s fully-owned distributor, Atlas, and its overseas affiliates.

Idemitsu will continue to aim for improvement and expansion of the firm’s business as a global supplier of lubricants as well as establish its community-oriented manufacturing and sales structure in Indonesia.

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