Bayer opens new Rp 61b plant in N. Sumatra

Adianto P. Simamora, The Jakarta Post, Tanjung Morawa

Pharmaceutical and consumer goods producer PT Bayer Indonesia Tbk, through its subsidiary PT Intikimiatama Perkasa, has invested Rp 61 billion (US$5.5 million) in building a mosquito coil factory in Tanjung Morawa, North Sumatra.

Company president Hans-Josef Schill said on Tuesday that the investment underlined the company's continued confidence in Indonesia's potential for growth.

"Despite the difficulties in the economic situation we are facing now, Bayer has not only stayed, but has further increased its business here," he said during the ceremony inaugurating the plant.

Construction of the plant started in 2000 and production commenced in the second quarter of this year.

Occupying 5.4 hectares of land, the plant is equipped with 15 state-of-the-art production lines capable of producing up to 1.6 billion mosquito coils each year.

"Currently, ten of the 15 production lines are running and we expect an output of 67 million double coils every month when all the production lines are running at full capacity (next year)," Schill said.

The country consumes about eight billion mosquito coils each year, according to Schill.

The Tanjung Morawa plant will produce coils marketed under Bayer's trademark Baygon, as well as the Mosfly trademark, which the company bought in 1997.

Aside from the new facility in Tanjung Morawa, Bayer also operates an agrichemical and consumer care products factory in Pulogadung in East Jakarta, a pharmaceutical plant in Cibubur, also in East Jakarta, and a polymer plant in Anyer, Banten.

Peter Glaessel, head of Bayer's country group for Southeast Asia, said Bayer considered Indonesia a key market for its Baygon products.

"Indonesia alone accounts for 16 percent of Bayer's Baygon sales worldwide. This establishes Indonesia as one of the most important countries for the Consumer Care Business Group," he said. Bayer recorded US$300 million in sales of Baygon products last year.