JAKARTA, March 7 Asia Pulse - PT Selapan Jaya , which operates oilplantations and palm oil processing plants will build a new palm oil plantwith a processing capacity of 60 tons of fresh fruit bunched an hour.

The new factory will bring the processing capacity of the company to 360tons of FFB an hour in 2006 when the new plant has been operational, itsPresident Alan Goh said here last weekend.

Goh said the fund will be raised through share sales.

The company plans to divest 30 per cent of its shares in March and offershave been made to investors from Singapore, Hong Kong and Malaysia.

The company has oil palm plantations in Palembang, South Sumatra and it isthe second largest producer of oil palm seedlings in the country after astate-owned plantation company in Pematang Siantar, North Sumatra.

This year the company hopes to sell 10 million seedlings . The countryneeds around 150 million seedlings year as against production of 90million seedlings by six producers.

The company targets to chalk up Rp145 billion (US$15.5 million) in netprofit this year up from Rp107 billion last year with sales rising toRp900 billion from Rp800 billion.

(ANTARA)