Husada boosts milk processing capacity to 80,000 tons a year

YOGYAKARTA (JP): Publicly listed milk factory Sari Husada is completing a new milk processing plant with a processing capacity of 50,000 tons per year.

Dwiyatno Siswosumarto, the company's president said here on Tuesday that the new plant, which was scheduled for commercial production next year, would raise its milk processing capacity to 80,000 tons per year.

The new plant, located in Kemudo, Klaten, some 17 kilometers east of here, would allow the company to meet rising demand both from local and foreign buyers, he said.

"The company will also produce new products at the new Kemudo plant," he said following the company's shareholders meeting.

In the meeting, the shareholders agreed not to distribute dividends for the 2000 financial year, although the company booked a net profit of about Rp 131.4 billion during the year,

"Our 2000 net profit amounted to Rp 131.4 billion. However, the earnings will be totally utilized for the completion of the US$15 million Kemudo Plant project," he said.

Dwiyatno declined to disclose the company's sales and profit target for 2001.

He said that Sari Husada's net sales in 2000 were Rp 585.4 billion, or a 36.5 percent increase from the Rp 428.8 billion in 1999.

The shareholders also agreed to appoint two more directors, bringing the total number to seven in the shareholders meeting.

He said that Michiel J.A. van der Meer was appointed to be Sari Husada's Project Director, while Harry Klompe was installed as the company's business development director. Their appointment was based on a recommendation from Dutch Nutricia International BV that owns 77.6 percent of Sari Husada.

Sari Husada's main products are powdered milk marketed under the brand name of SGM. The company also produces licensed products such as Morinaga, Dumex and Anchor.(23)