Beiersdorf, the German-based manufacturer of personal care products known for its Nivea skincare product lineup, inaugurated the expansion of its factory in Malang, East Java, as part of its commitment to strengthening its presence and fulfilling the growing demand for personal care.
With an investment of 鈧�26.1 million, or over Rp 400 billion for the factory expansion, Mr. Mehdi Ben Messaoud as President Director of PT Beiersdorf Indonesia expects the expansion of the factory to increase the company鈥檚 production capacity in Indonesia to more than 12,000 tons per month, from the previous 5,000 tons/month.
鈥淭he basis for the expansion is simply demand. We see an aggressive business demand in the Indonesian market. Since 2022, we have increased our production capacity by 240 percent and there is still a phase 2 and phase 3 development in the pipeline to meet this increasing demand,鈥� he said at the inauguration event in Malang on Tuesday, May 30, as quoted by Kontan.
Beiersdorf has had its factory operating in Indonesia since 1978. This latest expansion will be focused on equipping the facility with computerized machineries to be integrated with the current production system, according to Mr. Enri Gausman Lubis, Production Center Director at Beiersdorf Indonesia.
Meanwhile, the Investment Ministry and investment Coordinating Board (BKPM) expressed its hope that Beiersdorf would choose Indonesia as a production hub for the ASEAN market.
Nurul Ichwan, BPKM Deputy Director for Investment Promotion, said German investors were 鈥渙ne the strictest investors in the world鈥� and that their choice of an investment destination means that the destination has passed through a strict vetting process.
Therefore, he said, 鈥淕erman companies can be a reference to other companies, especially those from Europe,鈥� in investing in Indonesia.