DuPont targets RI and India as growth centers<\/p>\n
JAKARTA (JP): The U.S. chemical giant DuPont Co. is targeting
\nIndonesia and India as its future growth centers in Asia as it
\nplans to invest over US$2 billion in and generates 20 percent of
\nits global sales from the Asia Pacific region by 2000.<\/p>\n
DuPont president and chief executive officer John A. Krol said
\nhere yesterday that his company is now seeking new growth areas
\nbecause its traditional markets, such as North America, are
\ngrowing at a rate of less than 5 percent per annum.<\/p>\n
"We have to find new areas in which to grow... Now the
\nquestion is where our growth will come from. And it is obvious
\nthat this area is the fastest growing region in the world. So, we
\nwill focus our investment here," Krol said.<\/p>\n
He said his travel to Asia has confirmed his belief that Asia
\ncould serve as the company's future growth center and he picked
\nIndia and Indonesia as the potential bases in Asia.<\/p>\n
India, he said, has been liberalizing its economy for six
\nyears and is now actively attracting foreign investment to fuel
\nits economic growth.<\/p>\n
Indonesia, on the other hand, continues to pursue an open-
\nmarket liberalization policy and offer a very good opportunity
\nfor DuPont to serve both its domestic and Southeast Asian
\nmarkets, Krol said.<\/p>\n
He played down any suggestion that his company should
\neventually abandon Indonesia, considering that the country's
\ncurrent and near future political situation is not supportive for
\nnew investment.<\/p>\n
"I don't worry about that (the political risk of investing
\nhere) as people I have met here told me that succession will take
\nplace smoothly and whatever happens to the government in power,
\nthe liberalization of its economy will continue," Krol said.<\/p>\n
DuPont has been in Indonesia since the early 1970s when its
\noil and gas arm Conoco Indonesia Inc. secured a production-
\nsharing contract from state oil firm Pertamina.<\/p>\n
Conoco Indonesia currently produces some 100,000 barrels per
\nday of crude oil from its fields close to the Natuna islands in
\nRiau. Conoco Indonesia is currently conducting extensive oil
\nexplorations in the frontier areas of Irian Jaya.<\/p>\n
DuPont's other interests in Indonesia include PT Peroksida
\nIndonesia Pratama in Bekasi, West Java, which produces hydrogen
\nperoxide, and PT DuPont Agricultural Products Indonesia in
\nSidoarjo, East Java, which produces herbicides.<\/p>\n
Krol said that sales in the Asia Pacific region, where the
\ncompany has operations in 15 countries, have been expanding by 20
\npercent annually and exceeded US$3.5 billion in 1995.<\/p>\n
The region now accounts for only 7 percent of DuPont's global
\nsales but the company hopes to raise this portion to 20 percent,
\nor $9 billion, by 2000, Krol said.<\/p>\n
Half of DuPont's global sales, which totaled $42 billion in
\n1995, are now generated outside North America.<\/p>\n
With sales in North America growing at just 4 to 6 percent
\nannually, two-thirds of DuPont's revenues are expected to be
\ngenerated in other regions within the next 10 years, Krol said.<\/p>\n
DuPont's principal businesses are chemicals, fibers, petroleum
\nand agricultural products, electronics and imaging systems. It is
\nalso involved in aerospace, apparel, automotive, construction,
\npackaging and transportation activities.<\/p>\n
DuPont's best known products include Teflon, SilverStone and
\nLycra. (rid)<\/p>",
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"sponsor": "Okusi Associates",
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