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16 Oct, 2024

Givaudan begins construction on US$58 million production facility in Indonesia

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INDONESIA - Givaudan, the Swiss fragrance, taste, and wellbeing company, has embarked on the first phase of its US$58 million (CHF50 million) investment in an advanced production facility in Cikarang, Indonesia. 

The project is part of the company’s strategy to strengthen its footprint in Southeast Asia and expand its production capabilities in the region.

The company held a groundbreaking ceremony to mark the start of construction at the 24,000-square-meter facility, which will sit on a total reserved land area of 50,000 square meters. 

The site is designed to accommodate future expansions, allowing Givaudan to meet growing demand in the region. The new plant will produce a diverse range of savory, sweet, and snack powders, as well as infant nutrition solutions.

Construction is expected to take 18 months, with operations slated to commence in the first half of 2026. Givaudan anticipates that the new facility will create approximately 60 jobs in Indonesia, supporting local economic development and advancing the company’s collaboration with customers in the region.

Commitment to Southeast Asia

Givaudan’s investment into the Indonesian site comes as part of its plan to enhance its presence in Southeast Asia. The company has already established a facility in Indonesia, and the new plant will complement the existing operations. 

Louie D’Amico, President of Taste & Wellbeing at Givaudan, highlighted the strategic importance of the project, stating that it reinforces the company’s ability to grow through closer partnerships with its customers.

“With this expansion, we are better positioned to capture opportunities for growth in the region. Our goal is to deliver high-quality products that create exceptional food experiences,” said D’Amico during the ceremony.

The site, located in Cikarang, east of Jakarta, will focus on delivering products that meet the increasing demand for diverse food solutions, particularly in the snack and infant nutrition sectors. 

Givaudan’s expansion comes at a time when Southeast Asia’s food and beverage market is experiencing rapid growth, driven by evolving consumer preferences and rising disposable incomes.

Sustainability and future-proofing

In line with Givaudan’s commitment to sustainability, the new production facility is designed with environmentally friendly technologies. 

The plant will incorporate solar power, rainwater harvesting systems, recycled water systems, and energy-efficient lighting solutions. Givaudan also plans to purchase electricity from certified green energy providers to minimize the plant’s carbon footprint.

Christina Yeo, Head of Operations for the Asia Pacific region at Givaudan, noted that sustainability was a key consideration in the design of the facility. 

“At Givaudan, we are focused on purposeful growth. This facility is future-proofed to ensure we minimize environmental impact while maintaining operational efficiency and resilience,” Yeo commented.

The facility’s sustainability measures are expected to play a role in enhancing its long-term operational viability and aligning with the company’s global environmental goals.

Innovations in taste and wellbeing

In addition to expanding its production capabilities, Givaudan continues to develop innovative solutions across various sectors of the food and beverage industry. 

At an upcoming key ingredients event in Frankfurt, Germany, the company will showcase its latest product innovations, including a new heat-stable red beet extract for the bakery market. This product is designed to enhance the natural color of baked goods while maintaining its stability during the high temperatures of baking processes.

Givaudan’s expansion in Indonesia also aligns with the company’s broader focus on delivering tailored solutions that cater to the specific needs of its regional markets. 

As the plant moves toward completion, it is expected to serve as a hub for innovation, offering food manufacturers in Southeast Asia the ability to create unique and appealing products.

Supporting local growth

Beyond its production ambitions, Givaudan aims to make a lasting contribution to the communities where it operates. 

The Cikarang facility will be home to a health-focused community programme, which will foster local talent and promote sustainable growth in Indonesia. 

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