MARKET DEVELOPMENT
Sinar Mas to Spend $400m for Expanding Palm Oil Business
Sinar Mas to Spend $400m for Expanding Palm Oil Business
25/01/2014 (Jakarta Globe) - Sinar Mas Group, one of the country’s largest conglomerates, is setting aside $400 million to establish fatty acid and fatty alcohol plants as part of its expansion plan in the palm oil business.
The group, with businesses ranging from banking and energy to mining and construction, is allocating $100 million for the fatty acid plant, while the fatty alcohol plant will cost $300 million, said Gandi Sulistiyanto managing director, on Wednesday.
Fatty alcohol is used in plastics and pharmaceuticals, while fatty acid is an ingredient for soap, cosmetics, shampoo and home cleaning products.
Both plants will be located in Riau province, Sumatra.
Sinar Mas will use internal cash as well as bank loans to fund the construction, Gandi said.
Work on both plants has already started, and the company expects the fatty acid plant to begin operating by the third quarter of this year and the fatty alcohol plant in 2015.
Gundi said that one of Sinar Mas’s agribusiness divisions would manage the plants, but he refused to specify the company.
The group’s agribusiness interests include Sinarmas Agro Resources and Technology (Smart) and Asia Pulp & Paper.
Sinar Mas is planning to export most of the products produced by the new plants to countries such as China, Thailand and Japan.
Separately , APP’s unit Pabrik Kertas Tjiwi Kimia, a paper and stationery manufacturer, will invest $167.2 million into its subsidiary Oki Pulp & Paper Mills this June for the development of a pulp and tissue factory in Ogan Komering Ilir, South Sumatra.
The cash is the second part of Tjiwi’s $407 million capital injection commitment to Oki, and that is expected to be completed by 2016.
Tjiwi acquired a 35.3 percent stake in the pulp and tissue maker in July to boost Tjiwi’s expansion in the business.
The company’s other shareholders include Pindo Deli Pulp & Paper Mills — another Tjiwi unit — and Muba Green Indonesia.inar Mas to Spend $400m for Expanding Palm Oil Business
Sinar Mas Group, one of the country’s largest conglomerates, is setting aside $400 million to establish fatty acid and fatty alcohol plants as part of its expansion plan in the palm oil business.
The group, with businesses ranging from banking and energy to mining and construction, is allocating $100 million for the fatty acid plant, while the fatty alcohol plant will cost $300 million, said Gandi Sulistiyanto managing director, on Wednesday.
Fatty alcohol is used in plastics and pharmaceuticals, while fatty acid is an ingredient for soap, cosmetics, shampoo and home cleaning products.
Both plants will be located in Riau province, Sumatra.
Sinar Mas will use internal cash as well as bank loans to fund the construction, Gandi said.
Work on both plants has already started, and the company expects the fatty acid plant to begin operating by the third quarter of this year and the fatty alcohol plant in 2015.
Gundi said that one of Sinar Mas’s agribusiness divisions would manage the plants, but he refused to specify the company.
The group’s agribusiness interests include Sinarmas Agro Resources and Technology (Smart) and Asia Pulp & Paper.
Sinar Mas is planning to export most of the products produced by the new plants to countries such as China, Thailand and Japan.
Separately , APP’s unit Pabrik Kertas Tjiwi Kimia, a paper and stationery manufacturer, will invest $167.2 million into its subsidiary Oki Pulp & Paper Mills this June for the development of a pulp and tissue factory in Ogan Komering Ilir, South Sumatra.
The cash is the second part of Tjiwi’s $407 million capital injection commitment to Oki, and that is expected to be completed by 2016.
Tjiwi acquired a 35.3 percent stake in the pulp and tissue maker in July to boost Tjiwi’s expansion in the business.
The company’s other shareholders include Pindo Deli Pulp & Paper Mills — another Tjiwi unit — and Muba Green Indonesia.
The group, with businesses ranging from banking and energy to mining and construction, is allocating $100 million for the fatty acid plant, while the fatty alcohol plant will cost $300 million, said Gandi Sulistiyanto managing director, on Wednesday.
Fatty alcohol is used in plastics and pharmaceuticals, while fatty acid is an ingredient for soap, cosmetics, shampoo and home cleaning products.
Both plants will be located in Riau province, Sumatra.
Sinar Mas will use internal cash as well as bank loans to fund the construction, Gandi said.
Work on both plants has already started, and the company expects the fatty acid plant to begin operating by the third quarter of this year and the fatty alcohol plant in 2015.
Gundi said that one of Sinar Mas’s agribusiness divisions would manage the plants, but he refused to specify the company.
The group’s agribusiness interests include Sinarmas Agro Resources and Technology (Smart) and Asia Pulp & Paper.
Sinar Mas is planning to export most of the products produced by the new plants to countries such as China, Thailand and Japan.
Separately , APP’s unit Pabrik Kertas Tjiwi Kimia, a paper and stationery manufacturer, will invest $167.2 million into its subsidiary Oki Pulp & Paper Mills this June for the development of a pulp and tissue factory in Ogan Komering Ilir, South Sumatra.
The cash is the second part of Tjiwi’s $407 million capital injection commitment to Oki, and that is expected to be completed by 2016.
Tjiwi acquired a 35.3 percent stake in the pulp and tissue maker in July to boost Tjiwi’s expansion in the business.
The company’s other shareholders include Pindo Deli Pulp & Paper Mills — another Tjiwi unit — and Muba Green Indonesia.inar Mas to Spend $400m for Expanding Palm Oil Business
Sinar Mas Group, one of the country’s largest conglomerates, is setting aside $400 million to establish fatty acid and fatty alcohol plants as part of its expansion plan in the palm oil business.
The group, with businesses ranging from banking and energy to mining and construction, is allocating $100 million for the fatty acid plant, while the fatty alcohol plant will cost $300 million, said Gandi Sulistiyanto managing director, on Wednesday.
Fatty alcohol is used in plastics and pharmaceuticals, while fatty acid is an ingredient for soap, cosmetics, shampoo and home cleaning products.
Both plants will be located in Riau province, Sumatra.
Sinar Mas will use internal cash as well as bank loans to fund the construction, Gandi said.
Work on both plants has already started, and the company expects the fatty acid plant to begin operating by the third quarter of this year and the fatty alcohol plant in 2015.
Gundi said that one of Sinar Mas’s agribusiness divisions would manage the plants, but he refused to specify the company.
The group’s agribusiness interests include Sinarmas Agro Resources and Technology (Smart) and Asia Pulp & Paper.
Sinar Mas is planning to export most of the products produced by the new plants to countries such as China, Thailand and Japan.
Separately , APP’s unit Pabrik Kertas Tjiwi Kimia, a paper and stationery manufacturer, will invest $167.2 million into its subsidiary Oki Pulp & Paper Mills this June for the development of a pulp and tissue factory in Ogan Komering Ilir, South Sumatra.
The cash is the second part of Tjiwi’s $407 million capital injection commitment to Oki, and that is expected to be completed by 2016.
Tjiwi acquired a 35.3 percent stake in the pulp and tissue maker in July to boost Tjiwi’s expansion in the business.
The company’s other shareholders include Pindo Deli Pulp & Paper Mills — another Tjiwi unit — and Muba Green Indonesia.