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Eagle High Plantations to construct new palm oil factory in Papua
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An aerial view of a oil palm plantation in Mimika, Papua. (Antara/File)
P
lantation company Eagle High Plantations has announced that it will construct a new crude palm oil factory in Papua with an investment of Rp 200 billion (US$15 million).
It will be the company's ninth factory with a capacity of 45 tons of fresh fruit bunch (FFB) per hour or 270,000 tons of FFB per year.
“Construction will start this year and is it expected to start operations in 2018,” Eagle High Plantations head of investor relations and sustainability Sebastian Sharp said on Thursday.
With the new factory, the company expects to increase its CPO production capacity to 2.84 million tons per year from the existing 2.5 million tons.
Meanwhile, Eagle High Plantations director Henderi Djunaidi explained that the company’s capital expenditure was Rp 400 billion this year, Rp 160 billion of which was from bank credit and Rp 240 billion from the company’s internal cash.
“Half [of the capital expenditure] will go to the factory construction in Papua,” Henderi added.
The company has 150,000 hectares of plantations, 90 percent of which are located in Kalimantan and the remaining 10 percent in Sumatra, Sulawesi and Papua.
Sebastian said the production of FFB in 2015 and 2016 stood at1.4 million tons. The production of FFB is expected to increase 30 percent this year due to the increasing number of mature oil palms on its plantations. (dra/bbn)
