Anwar Sierad to invest Rp 77b in new projects
Anwar Sierad to invest Rp 77b in new projects
JAKARTA (JP): PT Anwar Sierad, an integrated poultry producer
and an animal feed manufacturer, will spend around Rp 77 billion
(US$36.6 million) in the next three years for expansion.
Budiarjo Tek, the company's president, said yesterday that the
company will install a new production unit at its feed mill in
East Java this year.
The installation of new production facilities, which will cost
the company around Rp 30 billion, will double the production
capacity of the feed mill to around 80 tons per hour, he said.
Budiarjo said the company is also preparing the construction
of a new feed mill and a corn drying plant in Lampung. The two
factories will cost the firm, listed on the Jakarta and Surabaya
exchanges, Rp 20 billion.
The new projects are part of the investment program promised
to investors during the company's public offering late last year,
he said, adding that the other projects include the construction
of three breeding farms, a fishmeal plant and an animal
pharmaceutical factory. Those projects would cost the company
around Rp 27 billion.
He said that most of the funds to be used for the expansion
projects were raised from the company's public offering last
year.
Anwar Sierad, which produces around 60 tons of animal feed per
hour from its feed mills in West and East Java, recorded an
increase in its sales last year to Rp 139 billion from Rp 127
billion in the previous year. The company's net profits also
increased by over 50 percent to Rp 14.16 billion from Rp 9.15
billion. The net earnings per share rose to Rp 518 from Rp 458.
Budiarjo said the company's sales are projected to increase by
over 50 percent this year due to greater efficiency at the
existing feed mills.
He refused to disclose the company's profit projections but
said that earnings are expected to continue growing in the next
three years as the result of the company's massive expansion.
Budiarjo also explained the appointment of Fadel Muhammad as
chief commissioner of Sierad Feedmill, the company's subsidiary.
He said that Fadel, the chairman of the Bukaka business group,
will buy a portion of the subsidiary's shares but he refused to
elaborate.
"The deal is still under negotiations," he said, adding that
the entry of Fadel to the company's supervisory board is
important not only because of his equity participation but more
on his good relationship to the government. (hen)