Anwar Sierad to invest Rp 77b in new projects<\/p>\n
JAKARTA (JP): PT Anwar Sierad, an integrated poultry producer
\nand an animal feed manufacturer, will spend around Rp 77 billion
\n(US$36.6 million) in the next three years for expansion.<\/p>\n
Budiarjo Tek, the company's president, said yesterday that the
\ncompany will install a new production unit at its feed mill in
\nEast Java this year.<\/p>\n
The installation of new production facilities, which will cost
\nthe company around Rp 30 billion, will double the production
\ncapacity of the feed mill to around 80 tons per hour, he said.<\/p>\n
Budiarjo said the company is also preparing the construction
\nof a new feed mill and a corn drying plant in Lampung. The two
\nfactories will cost the firm, listed on the Jakarta and Surabaya
\nexchanges, Rp 20 billion.<\/p>\n
The new projects are part of the investment program promised
\nto investors during the company's public offering late last year,
\nhe said, adding that the other projects include the construction
\nof three breeding farms, a fishmeal plant and an animal
\npharmaceutical factory. Those projects would cost the company
\naround Rp 27 billion.<\/p>\n
He said that most of the funds to be used for the expansion
\nprojects were raised from the company's public offering last
\nyear.<\/p>\n
Anwar Sierad, which produces around 60 tons of animal feed per
\nhour from its feed mills in West and East Java, recorded an
\nincrease in its sales last year to Rp 139 billion from Rp 127
\nbillion in the previous year. The company's net profits also
\nincreased by over 50 percent to Rp 14.16 billion from Rp 9.15
\nbillion. The net earnings per share rose to Rp 518 from Rp 458.<\/p>\n
Budiarjo said the company's sales are projected to increase by
\nover 50 percent this year due to greater efficiency at the
\nexisting feed mills.<\/p>\n
He refused to disclose the company's profit projections but
\nsaid that earnings are expected to continue growing in the next
\nthree years as the result of the company's massive expansion.<\/p>\n
Budiarjo also explained the appointment of Fadel Muhammad as
\nchief commissioner of Sierad Feedmill, the company's subsidiary.<\/p>\n
He said that Fadel, the chairman of the Bukaka business group,
\nwill buy a portion of the subsidiary's shares but he refused to
\nelaborate.<\/p>\n
\"The deal is still under negotiations,\" he said, adding that
\nthe entry of Fadel to the company's supervisory board is
\nimportant not only because of his equity participation but more
\non his good relationship to the government. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/anwar-sierad-to-invest-rp-77b-in-new-projects-1447899208",
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