PT Kaneka Foods Indonesia (KFI), a joint venture (JV) between Japan’s Mitsubishi and Kaneka will open a processed oil products facility in Bekasi, Indonesia, in 2020, as part of its efforts to boost its presence in confectionery and bakery ingredients markets.

KFI’s facility will feature equipment for the manufacture of filling and other processed oil products. It will have a production capacity of 15,000t per annum.

The factory will be built with an investment of JPY5bn ($45m) and is expected to commence productions from the first quarter of next year.

The JV intends to supply products such as margarine, as well as combine product knowledge and technical applications based on customers’ specific needs and speed up product development.

“The factory will be built with an investment of JPY5bn ($45m) and is expected to commence productions from the first quarter of next year.”

Additionally, KFI intends to expand Japanese style confectionery and bakery products across the Asian market to achieve a sales target of JPY10bn ($91m).

According to the company, the confectionery and bakery market has registered a steady growth in Indonesia and other Asian countries due to population increase and expansion of middle to high-end consumer classes.

In Indonesia, baked products have become an accepted part of daily lifestyles, and the consumption of baked goods is witnessing a compound annual growth rate of 5%.

Since 2013, KFI claimed that it has been catering to consumer demands by developing products that align with local taste.

KFI also introduced a new kind of soft bread with an unfamiliar texture into the Indonesian market.

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