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Wilmar to spend $300m in two years
The largest palm oil producer in the nation, Wilmar Indonesia, will build several new plants worth US$300 million in the next two years, a company executive said
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T
he largest palm oil producer in the nation, Wilmar Indonesia, will build several new plants worth US$300 million in the next two years, a company executive said.
Wilmar Indonesia will build oil refining plants and a flour mill through subsidiaries PT Wilmar Nabati Indonesia in Gresik, East Java; Padang, West Sumatra; and Balikpapan, East Kalimantan; and PT Multimas Nabati Asahan in Medan, North Sumatra.
“Palm oil and flour are commodities that are consumed by a lot of people and the demand keeps increasing every year. Wilmar sees a lot of business opportunities here,” Wilmar Indonesia commissioner Master Parulian Tumanggor said.
The construction of a flour mill would be a first for the palm oil company, he said.
Starting next year, the firm expects to produce 345,000 tons of flour a year in Gresik.
“We plan to have our own brand for the flour because this is a strategic industry,” he said.
However, he said that the company would sell to baking companies at first.
According to the Indonesian Wheat Flour Mills Association (Aptindo), Indonesians consumed 3.46 million tons of flour from January to September 2011, up 5.8 percent over 3.26 million tons in 2010 during the same period.
In addition, as part of its expansion, the company aims to increase crude palm oil (CPO) production by 7,000 tons per day in 2012.
Wilmar Indonesia also expects to produce 30,000 tons of CPO per day, or 7.8 million tons, in 2012, up from 23,000 tons a day in 2011, PT Wilmar Nabati Indonesia executive director Taufik Tamin said.
The company has 300,000 hectares across the archipelago, including 140,000 hectares dedicated to palm oil, and currently has assets of $35 billion.
Wilmar Indonesia is planning to acquire more land and in the next five years expects to produce 10 million tons of CPO.
According to Tumanggor, the production value of Wilmar Indonesia’s largest subsidiaries — PT Wilmar Nabati Indonesia and PT Multimas Nabati Asahan — reached $7.09 billion in 2011, up from $5.5 billion in 2010.
They predicted 20 percent growth in production value throughout this year.
Wilmar Indonesia is part of Wilmar International Ltd., Asia’s leading agribusiness group, which operates in more than 20 countries across four continents.
Wilmar Indonesia contributes 15 percent of the Group’s total production, he said. (nfo)
