PT Antang Ganda Utama (AGU) PIR Butong plans to build more processing factories to produce crude palm oil and palm kernel oil in its plantation area in North Barito regency, Central Kalimantan province, Antara reported on Monday (22/10/07).
The new factories will expand the company’s processing capacity of fresh fruit bunches of oil palm from 40 tons to 60 tons an hour.
The new factories are needed to process growing production of fresh fruit bunches with the expansion of oil palm plantations, company director for operations Adhita Laksamana Hartono said.
AGU, a subsidiary of cigarette giant PT Gudang Garam Kediri in East Java, came on line in 1990. It now has 18,087 hectares of oil palm plantation, including 3,600 hectares built for plasma farmers, who will sell their fresh fruit production to the company under contract.