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Bogasari increases wheat flour production capacity

03 October 2018 06:08 AM  Company: PT. Indofood Sukses Makmur Tbk [INDF]
Rp. 6,025  -75 (-1.23%)

JAKARTA - PT Indofood Sukses Makmur Tbk (INDF) continues its efforts to increase wheat flour production capacity through its subsidiary, PT Bogasari Flour Mills. The effort was made to maintain the market share of the wheat flour segment which now reaches 51%.

Franciscus Welirang, Director of INDF said, the company will continue to follow its annual plan. "Regarding capacity, we continue to maximize, and increase capacity to follow market growth," he said as quoted by Kontan.co.id, Tuesday (2/9).

Franky, his nickname, further explained that the company was preparing to add wheat milling capacity of 1,500 tons per day. "It is estimated to be able to produce in 2020," he said.

To date Bogasari has two factories. The largest is in Jakarta with a capacity of 10,450 tons per day. Meanwhile, in Surabaya, the production capacity is 6,000 tons per day.

So that the total production capacity is currently 16,450 tons per day. With the additional capacity of the three new lines, Bogasari's production capacity has increased to more than 18,000 tons per day.

Regarding the possibility of export, according to Franky, currently Bogasari has no specific targets other than supplies to several neighboring countries. Regarding business prospects, the company hopes that the growth of its flour business can grow by 3% - 5% this year.

The condition of wheat flour is currently affected by the increase in US dollar prices, where the main ingredients of wheat are obtained from imports. Franky said the current price of flour products would have been adjusted to the price of wheat, in other words, it had increased. (AM/LM)

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PT. Indofood Sukses Makmur Tbk [INDF]   Rp. 6,025   -75 (-1.23%)