General view of the Sinar Mas Cepsa oleochemical plant in Indonesia
The Dumai plant has an annual production capacity of 160,000 metric tonnes of fatty alcohol per year.
The oleochemical plant also helps to consolidate Cepsa’s position in Asia.

Sinar Mas Cepsa Starts up Production at EUR 300 million Vegetable-based Alcohols Plant in Indonesia

Sinar Mas Cepsa Starts up Production at EUR 300 million Vegetable-based Alcohols Plant in Indonesia

  • Sinar Mas Cepsa is a joint venture between Cepsa and Golden Agri-Resources (GAR)
  • EUR 300 million plant in Dumai, Sumatra to produce fatty alcohols and acids from sustainably-sourced palm kernel oil for the Asian, Eastern and Western European markets
  • The vegetable-based raw materials will be used to make hygiene products, cosmetics, household cleaning goods, and more

DUMAI, Indonesia
14 September 2017

Sinar Mas Cepsa inaugurated today its first oleochemicals plant in Indonesia, which represents an investment of EUR 300 million made over two years. The plant will produce fatty alcohols from sustainably-sourced palm kernel oil, a key ingredient in the manufacture of everyday products such as household cleaning goods and personal care products.

Sinar Mas Cepsa is a wholly-owned joint venture between Cepsa, a leading integrated energy company and world leader in the production of linear alkylbenzene (LAB) used to make biodegradable detergents, and Golden Agri-Resources, member of the Indonesian consortium of Sinar Mas businesses and the world’s second largest vertically-integrated palm oil company.

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The Dumai plant has an annual production capacity of 160,000 metric tonnes of fatty alcohol per year. Sales of the vegetable-based alcohols will primarily focus on Asia. The plant will also service demand from Sinar Mas Cepsa’s surfactant plant in Germany, which serves markets in Eastern and Western Europe.

The global market for fatty alcohols is predicted to reach 4.1 million metric tons by 2025, demonstrating a five-year compound annual growth rate of 3.5%. The plant helps to consolidate Cepsa’s position in Asia following the inauguration of its Shanghai plant in 2015, which made it the world´s second largest producer of phenol.

GAR’s Lubuck Gaung refinery, certified by the Roundtable on Sustainable Palm Oil and located nearby, supplies the plant with sustainable, traceable palm kernel oil. The Dumai plant is also fully self-sufficient.

For more information,
Cepsa – Communication
[email protected]
+34 91 337 62 02 / 60 00

Ayesha Khan
Communications Team, GoldenAgri-Resources
[email protected]
+65 9783 1944

Wulan Suling
Head, Media & Events, PT SMART Tbk
[email protected]
+62 818 909 900



CEPSA Corporate