Mon, 18 Oct 2010

Astra Agro plans to increase production capacity

Bandung, W Java (ANTARA News) - Publicly-listed oil palm plantation company PT Astra Agro Lestari Tbk plans to increase the production capacity of its crude palm oil processing plants this year to 1,125 tons/hour from 985 tons/hour previously.

"The production capacity will increase in 2011 or 2012," PT Astra Agro Lestari Deputy President Director Tonny Hermawan said here on Sunday.

With the current production capacity, the company was overwhelmed to process CPO particularly during the harvest time, he said.

He said CPO must be processed no later than 24 hours before it began to decay.

Therefore, he added, the company decided to build a CPO processing plant in Central Kalimantan and another in East Kalimantan with a capacity of 30-40 tons/hour each.

The construction of CPO processing plants would cost Rp70 billion-Rp90 billion each, he said.

The company has set itself the target of producing 1.06 million tons of palm oil this year, or about the same as last year`s.

He said the company`s production in the first semester of 2010 fell from a year earlier. But the production would be raised in the remaining three months of this year.

The company`s CPO production reached 90 thousand tons in July, 106 thousand tons in August and 102 thousand tons in September this year.(*)