P&G Buys Indonesian Oleo-chemical Products US$ 2 Billion
Bisnis Indonesia, page T7, 2005-05-27
Proctor & Gamble Chemicals, a unit from P&G Company, has declared its commitment to purchase oleo-chemical products as much as 200,000 tons worth US$2 billion from PT Domas Agrointi Prima in Kuala Tanjung, North Celebes. This 10 year contract happens to be the biggest contract ever done by P&G chemicals. The purchase volume reached 200,000 tons per year consisting of 160,000 tons of fatty alcohols and 40,000 tons of fatty acid and glycerin. This amount is equal to 20% of P&G Chemicals’ needs. PT Domas Agrointi Prima (Domba Mas Grup) has set up investments up to US$200 million-US$300 million. According to schedule, the fatty acid and fatty alcohol factory units will be completed by the middle of this year. Meanwhile, the glycerin unit is hoped to be done by the end of 2006 so the supply target can be actualized in 2007 with a market price of around US$160 million-US$200 million. The total sales of P&G globally from 16 of their brands add up to US$16 billion. Twelve of their products use oleo-chemicals. Several famous brands of P&G include Pampers, Pantene, Olay, Clairol Nice and Easy, Tide, Whisper.