PT Mandom Indonesia, a subsidiary of Mandom Corporation, will start the construction of a new factory this June in an attempt to cope with growing demand in the country. Mandom Indonesia said that it had awarded a construction contract worth IDR 390 billion ($40 million) to PT Kajima Indonesia to build the cosmetics plant on a 148,000-square-meter a plot of land in the MM2100 Industrial Estate in Cibitung, West Java. The construction is expected to be completed in December 2014. The company said it would use internal funds and bank loans to finance the construction of the new plant. Mandom Indonesia said that it planned to construct the new plant as one of its existing plants located in Sunter, North Jakarta, no longer had space for further expansion. The company has another plant in the MM2100 Industrial Estate.

When the new plant is completed, Mandom will relocate its Sunter factory to the MM2100 Industrial Estate. The current process of plastic packaging is dispatched from Cibitung to the Sunter Factory for the filling stage. Finished goods are sent to the logistics center in Cibitung. After the relocation, this process will run more efficiently since all factories will be located on the same industrial estate. Besides that, several points were taken into consideration such as the flood-prone Sunter Factory area and the transportation congestion level.