Osaka-based adhesive-maker Konishi Co. is forming a production and sales joint venture with Indonesian conglomerate Triputra Group to boost business in Southeast Asia.
The company and PT Triputra Investindo Arya will sign a contract Friday to establish the unit in Bogor, south of Jakarta, to begin operation in April 2020, according to a statement by Konishi .
Capitalized at 130 billion rupiah (¥1 billion; $9.27 million), the joint venture, PT Konishi Lemindo Indonesia, will be owned 70 percent and 30 percent by the Japanese and Indonesian companies, respectively, it said.
Konishi is seeking to cultivate the Southeast Asian market, where demand for adhesives for housing is strong, utilizing the conglomerate's experience in making and selling the products, Konishi spokesman Mitsuhiro Nakatani said Wednesday.
Konishi will also take over the adhesive business run by PT Lemindo Abadi Jaya, an adhesive-maker under the Indonesian conglomerate, Nakatani said.
According to the spokesman, overseas sales of the Konishi Group accounted for around ¥8 billion ($73 million), or 6 percent, of its total sales of ¥134 billion in the year through March.