Oji Holdings Corporation would like to announce that a decision was made to start a new business of manufacturing and sales of paper diaper in the Republic of Indonesia. For the purpose of the establishment of a joint venture, we have executed Joint Venture Agreement with PT Indofood CBP Sukses Makmur Tbk (“ICBP”), today.
1. Starting Paper Diaper Business in Indonesia
Indonesia have a population of more than 240 million, which is the largest among the nations in Southeast Asia. Also, considering the recent economic growth and having around 4.5 million babies born every year, it is expected that the demand for paper diaper will continue to grow.
To strengthen the ability of the development of products and the business competitiveness, Oji Group has established the Personal Care Innovation Center in last October. In the meanwhile, Oji Group has been working on building basis to promote the business to overseas. Today, we entered into an agreement with ICBP to start paper diaper business jointly.
For Oji Group, this joint venture is the first development in Southeast Asia in our Consumer Products business.
2. Overview of the Joint Venture
Oji Group and ICBP will incorporate a manufacturing company and a commercial company in Indonesia as joint venture. After incorporation, the production base is to be established to manufacture paper diaper in Indonesia. The Commercial company will market, sell and distribute paper diaper products through a variety of retail channels.
Overview of the Manufacturing Company and Commercial Company
|Manufacturing Company||Commercial Company|
|Company Name||To be decided before establishment||To be decided before establishment|
|Main business||Manufacturing of paper diaper products||Sales and marketing of paper diaper products|
|Ownership||Oji Holdings 51%, ICBP 49%||Oji Holdings 49%, ICBP 51%|
The capital fund, capital investment, location of business site and timing of establishment will be decided based on our further consideration and discussion.
3. Information of the Joint Venture Partner
|Company Name||PT Indofood CBP Sukses Makmur Tbk (ICBP)|
|Office Location||Jakarta, Republic of Indonesia|
|President||Mr. Anthoni Salim (President Director)|
Manufacturing and sales of various processed foods which includes instant noodle,
dairy products and baby food.
＊ICBP is a subsidiary of Indofood Sukses Makmur Tbk.
Director of Board, General Manager of Overseas Corporate Planning Dept, Oji Management Office Inc.