Kaneka completes construction of new processed oil products plant in Indonesia and holds launch ceremony on February 3

Kaneka Corporation (Osaka, Japan; President: Kimikazu Sugawara) has been making preparations for the launch of PT. Kaneka Foods Indonesia (Karawang, Indonesia; PresidentDirector: Genichiro Kocho; herein after referred to as KFI), which was established in October 2013. Construction was completed on the manufacturing facilities and office in January 2014 with the aim of launching full-scale operations by February. The launch ceremony was held on February 3 at a hotel in Jakarta, and was attended by around 100 people, including Mr. Ikmal Lukman, Director of Sectors Investment Promotion of the Indonesia Investment Coordinating Board, Mr. Hanafi, Head of Industry Agency of Karawang Regency, Mr. Shigeru Ushio, Minister of the Embassy of Japan in Indonesia, government officials, local VIPs and trading partners.

KFI is a company that manufactures and sells fillings* and other processed oil products established as a 50-50 joint venture with Mitsubishi Corporation (Chiyoda-ku, Tokyo, Japan; President: Ken Kobayashi) for the purpose of building a business foundation in the rapidly growing Indonesian confectionary and bakery market and promoting overseas development of Kaneka’s food business. The total investment was roughly ¥500 million, and the production capacity will be 1,800 tons per year.
* Bread and confectionary ingredients placed in between slices of bread in a sandwich or used to fill bread and snacks. Adds taste variety and contributes to product marketability.

KFI is the first overseas facility in the field of processed oils, which is the core of Kaneka’s food business. Taking advantage of Mitsubishi Corporation’s material procurement functions and knowledge of Indonesia and Kaneka’s manufacturing technology, including its facility, manufacturing and operational know-how related to processed oils, the company will provide high-quality, competitive products and engage in product development and sales promotions including proposals for use of its products. The aim is to achieve ¥2.5 billion in sales by 2015. Kaneka will also look into expanding sales of its other products and those of group companies, including other processed oilproducts and yeasts, in Indonesia and ASEAN countries as it seeks to further accelerate the overseas development of its food business.

Outline of Kaneka Foods Indonesia

Company name	：PT. Kaneka Foods Indonesia
Shareholder composition	：Kaneka (50%), Mitsubishi Corporation (50%)
Capital	：Rp50 billion (Approx. ¥500 million)
Location	：Karawang, Indonesia
Business	：Manufacture and sale of fillings and other processed oil products