Idemitsu Completes Indonesia Plant

Idemitsu Kosan completed the construction of its second Indonesia lubricant blending plant, nearly doubling its production capacity within the country, the company said in a press release this week.

The Cikarang, western Java, plant boasts 45,000 metric tons per year of capacity, manufacturing factory-fill motorcycle and automotive engine oils and after-market original equipment manufacturer replacement products.

Indonesia has the worlds fourth largest population, and we are expecting a steady growth in demand, said the press release.

In addition, the expanded capacity will allow Tokyo-based Idemitsu to toll-blend locally for Japanese OEMs, making it easier for Japanese brands to obtain Indonesias mandatory national lubricant standard certification in order to continue marketing its products in the country, according to a company spokesperson. A law requiring lubricants to carry the SNI certification went into effect recently.

The Cikarang factory covers an area of 80,000 square meters and is the seventh overseas plant for the company. The new plant is operated by PT. Idemitsu Lube Techno Indonesia, a joint venture with local Atlas Petrochem Indo, set up in 2004. Products will be distributed through Idemitsu Lube Indonesia, Atlas and other overseas affiliates.

Idemitsu operates another lube blending plant in Karawang, established in 2005, with a capacity of 58,000 tons t/y. It is located in the Karawang International Industrial City where many Japanese automotive parts manufacturers like Yamaha and Daihatsu are based, but the company said that facility has no room for expansion, necessitating construction of a second plant nearby. With the new plant, the companys total capacity in Indonesia increased to 103,000 t/y.

Idemitsu operates blending plants in China, Thailand, India and Vietnam.

Idemitsu Cikarang plant in Indonesia

Photo: Business Wire