Daiken Corporation (Osaka) has announced a new door manufacturing plant in Surabaya, Indonesia. A new subsidiary Daiken Dharma Indonesia, a joint venture with Dharma Satya Nusantara (DSN) will manage and market the products.
Manufacturing will begin in July 2016, with an annual 180,000 sets of interior doors and a three billion yen sales target by 2020. The total capital investment is about 770 million yen, with Daiken holding a 70% stake, DSN 25%, and local companies 5%.
Indonesia has the fourth largest population in the world with strong economic growth and strong housing demand for middle income people expected to grow rapidly. The demand will be for high quality and unique designs in interior furnishings.