IFF Invests $87 Million in Indonesia to Support Growth in Greater Asia

Rhea-AI Summary

IFF announced a substantial investment of $87 million to expand its flavors manufacturing facility in Karawang, Indonesia. This facility, the largest in Greater Asia, enhances IFF's capabilities to meet the growing demand for flavor technology. The 12,800m² state-of-the-art facility focuses on efficiency, sustainability, and quality control, contributing to IFF's strategy of targeting emerging markets in Asia. With this investment, IFF aims to capitalize on the significant growth potential in the region, expected to account for half of global consumption growth in the next decade.

Positive

• Investment of $87 million in facility expansion demonstrates commitment to the Asian market.
• The facility will enhance production capabilities for liquid, powder, emulsions, and spray dry technology.
• Focus on sustainability with initiatives such as zero waste to landfill and reduced greenhouse gas emissions.

Negative

• None.

NEW YORK--(BUSINESS WIRE)-- IFF (NYSE: IFF) announced today that the Company invested a total of $87 million in their newly extended flavors manufacturing facility in Karawang, Indonesia during the site’s virtual opening. The facility, located in Karawang International Industrial City, first started operations in 2015 to address the fast-growing demand for flavor technology in the region. Today, as IFF’s largest manufacturing facility in Greater Asia, Karawang houses full manufacturing capabilities, from liquid compounds to powder, emulsions, and spray dry technology, warehousing and quality control.

Andreas Fibig, Chairman and CEO of IFF said, “The vision for IFF is to be the partner for essential solutions. That means we are committed to leading throughout our global value chain and accelerating our pursuit of new, creative and integrated solutions. This investment reflects our confidence and ambition in the region. For the past ten years, IFF has made significant investments in Asia as we've expanded our footprint in China, Singapore, India and most recently, Indonesia. It is an exciting time in IFF as we continue to deliver on our strategy that keeps the customer at the center of all we do.”

The newly extended 12,800m² state-of-the-art facility is equipped with modern infrastructure and technology to ensure efficiency, safety, quality, and traceability. In line with the Company’s dedication to drive sustainability, the site initiatives range from zero waste to landfill, and reductions in greenhouse gas emissions, energy, water, and hazardous waste. The expansion and increased capacity services customers in South East Asia and North Asia. This investment is consistent with IFF's strategy to capture the growth potential of emerging markets in Asia.

Nicolas Mirzayantz, President of IFF’s Nourish Division said, "This market is dynamic and in need for differentiated products. Consumers in Asia are expected to account for half of global consumption growth in the next decade,ⁱ making the growth potential more of a reality than ever before. We take great pride in ensuring our facilities operate in accordance with our sustainability targets and I am very proud of the strides Karawang has made to Do More Good for our customers, employees and communities. Everything we do in Nourish is customer-centric, and it's that kind of passion that we continue to bring to Karawang.”

Welcome to IFF

At IFF (NYSE: IFF), an industry leader in food, beverage, scent, health and biosciences, science and creativity meet to create essential solutions for a better world – from global icons to unexpected innovations and experiences. With the beauty of art and the precision of science, we are an international collective of thinkers who partners with customers to bring scents, tastes, experiences, ingredients and solutions for products the world craves. Together, we will do more good for people and planet. Learn more at iff.com, Twitter, Facebook, Instagram, and LinkedIn.

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ⁱ https://www.mckinsey.com/featured-insights/future-of-asia/meet-your-future-asian-consumer

View source version on businesswire.com: https://www.businesswire.com/news/home/20211117005015/en/

Michael DeVeau

Chief Investor Relations & Communications Officer

212.708.7164

Michael.DeVeau@iff.com

Source: IFF

FAQ

What is the recent investment by IFF in Indonesia?

IFF has invested $87 million in expanding its flavors manufacturing facility in Karawang, Indonesia.

What are the main features of the new IFF facility in Karawang?

The new facility spans 12,800m² and includes full manufacturing capabilities, modern infrastructure, and a focus on sustainability.

How does the investment in Karawang align with IFF's business strategy?

This investment reflects IFF's strategy to capture growth potential in emerging Asian markets, where consumer demand is rapidly increasing.

What is the expected impact of the Karawang facility on IFF's operations?

The facility will enhance IFF's production capabilities and support business growth in South East and North Asia.

What sustainability goals are associated with the new IFF facility?

The facility aims for zero waste to landfill and reduction in greenhouse gas emissions, energy usage, and hazardous waste.