KAO Restructure Asian Supply Base

KAO’s Malaysian subsidiary in PENANG started production of fatty alcohol from the new plant which represents an investment of J-Yen 4.200 million. The yearly capacity is 50.000 mt and the total capacity of this factory will become 166.000 mt in the future. KAO also has a factory of under 35.000 mt capacity in the Philippines but KAO has decided that Malaysia would be a better proposition than the Philippines because of the stable supply of Palm Oil. KAO had stopped production of surfactants for hair dye, shampoo and hair rinses in Taiwan as the forecast for this market is that it will shrink as companies shift their manufacturing factories from Taiwan to China. KAO has also stopped production of shampoo and hair rinses in Malaysia to concentrate their production of these products in Thailand and Indonesia.