Rengo Co., Ltd. (Head Office: Kita-ku, Osaka; President & CEO: Kiyoshi Otsubo) announces that P.T. Surya Rengo Containers (SRC), a related company that conducts business in Indonesia, has opened its new Karawang Factory. This new plant is SRC's fourth corrugated plant.

SRC is a joint venture company affiliated to Rengo and PT Indofood CBP Sukses Makmur Tbk. Rengo holds a 40% stake in SRC, which provides high-quality corrugated packaging to many important clients including Japanese and multinational corporations, as well as major local corporations.

Indonesia has the world's fourth-largest population after China, India, and the United States. It continues to experience remarkable economic growth as an emerging nation, centering on domestic demand. Its GDP growth rate in 2012 is predicted to be 6.0%,* and robust demand for corrugated packaging is expected to continue in the future.

The Karawang Factory is located inside the Karawang International Industrial City (Karawang, West Java) on the outskirts of eastern Jakarta. Many foreign companies, including Japanese corporations, have entered this area. The Karawang Factory, with an annual production capacity of 60,000 tons, is one of Indonesia's largest corrugated plants. As such, SRC's corrugated packaging supply system in the Jakarta region has been further strengthened. Together with its three existing factories in Jakarta, Surabaya, and Semarang, SRC's total annual production capacity has been increased to 192,000 tons.

Rengo, as a “General Packaging Industry” (GPI), positions its overseas operations at the core of its overall business. It is working to strengthen its packaging business in Southeast Asia and China, and has also constructed optimum, seamless packaging supply systems in various areas inside and outside Japan. Since Rengo entered Indonesia in 1992, it has considered the country, a principal member of the Association of Southeast Asian Nations (ASEAN), an important strategic base.

Rengo's corrugated packaging manufacturing bases in Southeast Asia currently span Indonesia, Thailand, Malaysia, Singapore, and Vietnam. Going forward, Rengo will continue working to further enhance its corrugated packaging business, and to sustain growth that hinges on economic development in the ASEAN region.

* GDP growth rate prediction released by the International Monetary Fund (IMF) in October 2012