Kao Corporation (President and CEO: Michitaka Sawada) has agreed with Apical Group Limited (CEO: Dato Yeo How) to establish PT Apical Kao Chemicals, a joint venture company for manufacturing fatty acids. The operation of the joint venture company is scheduled to commence in 2019.

Kao will establish a production base for fat and oil products in Indonesia, a country with abundant raw materials for the production of such products. This is in addition to the production bases that Kao already has in the Philippines and Malaysia. 

By cooperating with Apical Group which has its own plantations and also manufactures fats and oils, Kao will be able to secure an even more stable supply of fat and oil materials than ever before. Through the optimization of production bases within the Kao Group to manufacture and stably supply competitive fat and oil products, Kao plans to build the foundation for the expansion and greater profitability of its chemical business unit.

Kao Group will offer fat and oil products that are sustainable and high-quality as well as unique fat and oil derivatives to an even wider range of customers.