MGRO - PT. Mahkota Group Tbk

Rp 885

+25 (+2,91%)

JAKARTA. PT Mahkota Group Tbk (MGRO), a Crude Palm Oil (CPO) company,  is completing its refinery in Dumai, Riau. The refinery is planned to able to produce 1,500 tons of cooking oil per day.

"Today, (the construction progress) has reached 85%, and is expected to be fully operational by the end of 2019. If there is a delay, it will be operational in January 2020 at the latest," explained Elvi, Corporate Secretary of MGRO as quoted by Kontan.co.id on Monday (14/10).

As mentioned earlier, the refinery will be able to produce cooking oil with a production capacity of 1,500 tons per day, while for the kernel crushing plant, it is expected to be able to produce 400 tons of palm kernel oil per day.

According to Elvi, more than 50% of the company's capital expenditure budget of Rp 200 billion has been absorbed, mostly for the construction of the refinery. 

The company believes that the prospect for CPO business is quite bright until the end of the year. For this reason, according to Evi, the company is also in the process of acquiring a palm oil mill in South Sumatera. (AM/AR)