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25 May 2016

Sawit Sumbermas (SSMS) Build Rp120 Billion CPO Factory

Sawit Sumbermas (SSMS) Build Rp120 Billion CPO Factory


Director of Sawit Sumbermas Rimbun Situmorang said that the funds for the construction of the factory will be allocated from internal cash. Total capital expenditure (Capex) this year reaches Rp500 billion.


"We will build a palm oil factory with a capacity of 60 tons per hour. The investment is around Rp115 billion-Rp120 billion," he said after a public presentation, Wednesday (25/5/2016).


He added, the construction of the palm oil mill will be carried out at the palm oil plantation that was recently acquired last year. At the end of last year, the company executed the acquisition of two palm oil companies in a transaction worth US$50 million.


One was the acquisition of PT Mirza Pratama Putra (MPP) worth US$15 million and PT Menteng Kencana Mas (MKM) worth US$35 million. Both companies are located in Central Kalimantan, not far from the current plantation owned by the company.


The palm oil mill construction is expected to be completed in late 2017 or around 18-20 months. At the end of 2017, the company's palm oil mills will amount to seven units with a capacity of 435 tons per hour.


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