Li & Fung : LF Beauty to build GlaxoSmithKline’s first dedicated toothpaste facility in Indonesia

Use of locally-sourced talent and material to manufacture Sensodyne toothpaste for the betterment of Indonesian consumers' health and quality of life

Hong Kong, 5 September 2017 - LF Beauty, a division of Li & Fung (SEHK: 494) and a leader in sustainable healthcare and beauty manufacturing, today announced it has entered into a strategic manufacturing agreement with GlaxoSmithKline Consumer Healthcare (GSK) for the manufacture and supply of Sensodyne toothpaste in Indonesia. LF Beauty is one of the dedicated product verticals under Li & Fung's newly formed Product segment.

Under the agreement, LF Beauty will build a dedicated facility to manufacture toothpaste for GSK in Indonesia, which is expected to create 100 local jobs and contribute to the development of manufacturing capabilities and skills in Indonesia.

The new 3,700 m built-up facility located in Jalan Raya Bogor, East Jakarta will use local talent and 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.

Commenting on the agreement, Gerard Raymond, President of LF Beauty, said, 'We have deep local market knowledge and healthcare manufacturing knowhow, with solid experience working with many reputable healthcare brands 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 honored 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.'

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 US$850 million worth of goods from Indonesia.

'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 favorable 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.

This facility will be halal-certified and be built to globally-recognized 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[1].

[1] 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)