Japan's Idemitsu Kosan will set up a new lubricant plant next year in western Java, Indonesia, the company said.
The companys PT. Idemitsu Lube Techno Indonesia subsidiary will set up the new plant in Karawang International Industrial City, Karawang province. The new plant will have production capacity of 35,000 kiloliters (about 31,000 metric tons) per year, and operations are expected to start in 2019.
The new plant will produce motorcycle and four-wheel vehicle lubricants and industrial lubricants to meet increasing demand, said a company spokesman.
Idemitsu Lube Techno was set up in 2004 and has a lubricant plant with capacity of 65,000 kiloliters per year in KIIC, where many Japanese automotive manufacturers like Toyota and Yamaha are tenants. According to statistics from the Asean Automotive Federation, Indonesia produced 1.2 million units of four-wheeler vehicles and was the second largest producer among Asean (Association of Southeast Asian Nations) countries after Thailand.