MARKET DEVELOPMENT
CBIP to Build Palm Oil Mill in Central Kalimantan For RM39 Mil
CBIP to Build Palm Oil Mill in Central Kalimantan For RM39 Mil
01/06/2017 (The Edge) - CB Industrial Products Holdings Bhd (CBIP) announced that its 94%-owned subsidiary PT Berkala Maju Bersama will be constructing one unit of Continuous Sterilisation Palm Oil Mill at Manuhing in Central Kalimantan, Indonesia, at a cost of RM39.42 million.
“The Construction of Palm Oil Mill is expected to add another new stream of revenue to the company,” CBIP said in a filing with Bursa Malaysia this evening.
“The total cost for the Construction of Palm Oil Mill will be satisfied by internally-generated funds or bank borrowings,” the plantation equipment supplier said in a filing with Bursa Malaysia this evening.
As at end-March, CBIP has cash and equivalents of RM91.93 million.
According to CBIP, the palm oil mill will have initial capacity to process 45 tonnes of fresh fruit bunches in one hour.
To construct the palm oil mill, CBIP said it has engaged two of its subsidiaries – its wholly-owned PalmitEco Engineering Sdn Bhd and 95%-owned PT CB Polaindo – to carry out the works.
CBIP said PalmitEco will import some machineries and equipment worth US$5.66 million (RM24.24 million), while PT CB Polaindo will carry out construction works worth 47.36 billion rupiah (RM15.2 million).
“Barring any unforeseen circumstances, the Board of Directors expects the construction of the palm oil mill will commence in July and be completed by November 2018,” CBIP added.
Listed on the local bourse since 1999, shares in CBIP rose two sen or 0.96% to close at RM2.10, valuing it at a market capitalisation of RM1.13 billion.
“The Construction of Palm Oil Mill is expected to add another new stream of revenue to the company,” CBIP said in a filing with Bursa Malaysia this evening.
“The total cost for the Construction of Palm Oil Mill will be satisfied by internally-generated funds or bank borrowings,” the plantation equipment supplier said in a filing with Bursa Malaysia this evening.
As at end-March, CBIP has cash and equivalents of RM91.93 million.
According to CBIP, the palm oil mill will have initial capacity to process 45 tonnes of fresh fruit bunches in one hour.
To construct the palm oil mill, CBIP said it has engaged two of its subsidiaries – its wholly-owned PalmitEco Engineering Sdn Bhd and 95%-owned PT CB Polaindo – to carry out the works.
CBIP said PalmitEco will import some machineries and equipment worth US$5.66 million (RM24.24 million), while PT CB Polaindo will carry out construction works worth 47.36 billion rupiah (RM15.2 million).
“Barring any unforeseen circumstances, the Board of Directors expects the construction of the palm oil mill will commence in July and be completed by November 2018,” CBIP added.
Listed on the local bourse since 1999, shares in CBIP rose two sen or 0.96% to close at RM2.10, valuing it at a market capitalisation of RM1.13 billion.