London Sumatra set to expand

London Sumatra set to expand

JAKARTA: PT Perusahaan Perkebunan London Sumatra Indonesia, the
nation's second-biggest publicly traded agriculture company by
market value, plans to buy plantations from one of its
shareholders to expand its palm oil business.

London Sumatra, known as Lonsum, plans to buy assets including
14,478 hectares of oil-palm plantations from PT Pan London
Sumatra Plantation, which has a 21 percent stake in Lonsum, the
Jakarta-based company said in a media statement. The assets are
valued at Rp 520 billion (US$57 million), it said.

Lonsum has the capacity to process 1.4 million tons of palm
oil a year. The company has plantations in Sumatra, Java,
Kalimantan and Sulawesi.

About a third of its output is exported to China, India and
Europe. -- Bloomberg