GlaxoSmithKline invests a further GBP 4 million to enhance manufacturing capacity and capability in Indonesia
05 September 2017
Indonesia-based LF Beauty to build the first dedicated toothpaste facility to manufacture Sensodyne for GSK
GlaxoSmithKline Consumer Healthcare (GSK) has entered into a strategic manufacturing agreement with LF Beauty for the manufacture and supply of Sensodyne toothpaste, investing an additional GBP 4 million (IDR 69 billion) in Indonesia. In the last 24 months, GSK has invested GBP 13.2 million (IDR 228 billion) in the country, beginning last year with the expansion of its manufacturing site in Pulogadung.
GSK’s latest investment will see it increase its domestic manufacturing capacity for consumer healthcare products, creating at least 250 jobs and contributing to the development of capabilities and skills in Indonesia. This builds on GSK’s existing Indonesian business base, which currently employs around 1,300 people.
“Indonesia’s healthcare manufacturing sector continues to grow in Southeast Asia due to a number of factors including its skilled workforce, sustainable infrastructure solutions and a favourable economy. Today’s announcement, along with the expansion of our facility at Pulogadung, demonstrates GSK’s commitment to transfer advanced manufacturing knowledge that can strengthen the country’s technological capability and talent. It will also help increase access to innovative solutions that improve the quality of health for Indonesians,” said Pawan Sud, President Director, GSK Consumer Healthcare Indonesia.
Under the new contract, LF Beauty will build a dedicated facility to manufacture toothpaste for GSK in Indonesia. The new 3,700 m2 built-up facility located in Pasar Rebo, East Jakarta will use as many locally-sourced materials where possible in the production and is expected to improve timely access and supply efficiency to produce 20 million tubes of Sensodyne by 2020.
This facility will be halal-certified and be built to globally-recognised Good Manufacturing Practice (GMP) standards. In addition, it aims to achieve the gold standard in Leadership in Energy & Environmental Design (LEED) certification for energy saving, water efficiency and carbon dioxide emission reduction while maintaining industry-leading product quality and sustainable production of Sensodyne – the number one selling sensitive toothpaste in Indonesia.
“We have deep local market knowledge and healthcare manufacturing knowhow, with solid experience working with many reputable healthcare customers including in oral healthcare. We are confident this new halal-certified facility will not only meet the needs of Indonesian consumers but also help develop home-grown capabilities and upskill local manufacturing talent in Indonesia. LF Beauty is honoured to partner with an innovative and forward-looking healthcare company like GSK that strives for efficient and agile delivery to meet the needs of Indonesia’s consumers,” said Gerard Raymond, President of LF Beauty.
LF Beauty has been operating in Indonesia for more than 40 years with strong expertise in sustainable manufacturing, operating a LEED-certified R&D facility in Thailand. Its parent company Li & Fung, is the world’s leading supply chain solutions partner for brands and retailers with a 111-year old heritage and presence in more than 40 countries worldwide. In 2016 alone Li & Fung exported over GBP 632 million (IDR 10,934 billion) worth of goods from Indonesia.
Thomas Lembong, Chairman of Indonesia Investment Coordinating Board (BKPM) added, “This new facility, built for GSK by LF Beauty, will produce a GSK's global power brand and one of their most innovative products. It is testament to the country’s thriving sustainable manufacturing environment and open economy. BKPM welcomes such valuable partnerships and sizeable investments that pave the way for local talent development. As a result of President Jokowi's meeting with GSK in London last year, this project is aligned with the government’s vision for Indonesia to become a key site for development of innovative pharmaceutical manufacturing.”
“GSK’s latest investment in Indonesia fulfils its pledge made to President Joko Widodo during his 2016 visit to London and demonstrates the ongoing commitment of a major UK company in Indonesia through job creation and skills transfer. I would like to extend my personal congratulations to GSK and their local partner, LF Beauty, and wish them every success with their venture,” added Richard Graham, Prime Minister’s Trade Envoy to Indonesia, Malaysia, the Philippines and the ASEAN Economic Community.
In addition to the new toothpaste manufacturing facility, GSK has expanded its existing facility in Pulogadung to conduct end-to-end production and support the growth of its diverse consumer healthcare and pharmaceutical pipeline, including globally-recognised products such as Panadol, Actifed and Ventolin.
GSK is a science-led global healthcare company researching and developing innovative Pharmaceutical, Vaccines and Consumer Health products, with a mission to improve the quality of human life by enabling people to do more, feel better and live longer.
About LF Beauty
LF Beauty, a division of Li & Fung, the world’s leading supply chain solutions partner for brands and retailers, is a one-stop-shop partner and supplier of product solutions for fragrance, skincare, color cosmetics, digital POS displays and beauty instruments for world-class brands, retailers and direct marketers. It offers a full range of expert services, including marketing, design, engineering, formulation, filling, packaging, manufacturing, quality control, logistics and POS displays.
For more information, please visit https://www.lfbeauty.com/
About Li & Fung Limited
Li & Fung (SEHK: 494), the Hong Kong-headquartered multinational group, is the world’s leading supply chain solutions partner. It specializes in responsibly managing supply chains of high-volume, time-sensitive goods for leading retailers and brands worldwide, in around 250 offices across more than 40 economies.
For more information, please visit www.lifung.com
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 Base on the spot exchange rate of GBP 1 = Rp17,300
 Base on the spot exchange rate of GBP 1 = Rp17,300
 PT GlaxoSmithKline Indonesia claim based on Nielsen Retail Index data MAT July 2017 for Sensitive Variants/Brands Segment in Toothpaste category for Indonesia Urban market. (Copyright © 2017, Nielsen)