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

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)