Sara Lee Adds Production Capacity in Indonesia
Kompas, page 17, 2005-12-17
PT Sara Lee Indonesia will add to its investment by increasing the production capacity in Indonesia from France. Although the investment amount is small, this company will help in giving work opportunities to Indonesians. The relocation was done last October 2005. One of the reasons of the relocation is the cheaper labour in Indonesia compared to Europe. Other than that, Indonesia has a relatively large market for Sara Lee products such as the brands Kiwi, Ambi Pur, She, Sanex, Zwitsal, Brylcreem.
French Kiwi Shoe Polish Wax Factory Relocated to Cibubur
Bisnis Indonesia, page 5, 2005-12-17
Sara Lee Corporation relocated most of its shoe polish production with the brand Kiwi from France to Cibubur since October 2005 in order to cut production costs. Other than being relocated to Indonesia, some have alose been relocated to China and India. However, the company would not divulge any details regarding the capacity or investment. They only reassure that the relocation of the factories is purely for business purposes, not political.
As much as 80 percent of the total production of Kiwi shoe polish in Cibubur is to fulfill the national needs, and the other 20 percent is for export. However, after the relocation, 50 percent will be for local needs and the other 50 percent will be for export. Indonesia is responsible for 5 percent of Sara Lee’s total income. Next year, Sara Lee targets a growth of 10-15 percent in Indonesia, or at least twice the Gross Domestic Product (GDP).