March 23, 2018
Volume 7 Issue 3
Federal Karyatama Consolidates Production
Following a restructuring that increased its lube blending capacity by 67 percent, Indonesia’s PT Federal Karyatama plans to expand in its domestic market and to venture into overseas countries.
In August the company opened a plant in Western Java’s Baten province, in the Kratatau Industrial Estate Cilegon, with capacity to manufacture 88,000 metric tons per year of lubricants. Then during the fourth quarter of last year it closed two older plants, both located in Pulogadung, in eastern Jakarta, and with combined capacity of 53,000 t/y.
“We had operated two small plants in Pulogadung since the early ‘90s, and combined capacity was around 60 million liters annually,” Federal Karyatama CEO Patrick Adhiatmadja told Lube Report. “Our new and more modern facility allows us to operate more efficiently with built capacity of 100 million liters annually.”
“The excess capacity is meant for further market development, both organic and inorganic, for example [business-to-business supply to] fleet and industrial customers, also potential for export markets,” he added.
Rupiah 275 billion (U.S. $23 million) was invested in the new plant.
The company blends motorcycle oils under its Federal Oil brand and AHM-branded lubricants for Honda Motorcycles. It sold 40 million tonsof lubricants during the first nine months of 2017.
Federal Karyatama’s holding company, MPM, is listed on the Indonesia Stock Exchange and markets and distributes Honda motorcycles. It also sells and services Nissan and Datsun and other brands of automobiles.