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