MGRO - PT. Mahkota Group Tbk

Rp 860

-10 (-1,15%)

JAKARTA. PT Mahkota Group Tbk (MGRO) acquired a palm oil mill in South Sumatera for Rp 120 billion to increase the supply of Crude Palm Oil (CPO).

Usli Sarsi, President Director of MGRO, said that the fund used to acquire the mill came from bank loans and its subsidiary. "The acquisition process is expected to be completed before the end of this year, so that later it will contribute significantly to increase revenue," Sarsi said as quoted by Kontan on Tuesday (24/9) today.

The mill is owned by PT Berlian Inti Mekar. This factory has a production capacity of 45 tons of fresh fruit bunches per hour. With the additional capacity, the company is confident that it can produce CPO-derived products, such as cooking oil, as much as 1,500 tons per day.

To process CPO into cooking oil, MGRO will process it at its refinery facility in Dumai, Riau. This facility is still in the final stages of development. (KR/AR)