29 November 2019

KONTAN.CO.ID - JAKARTA. Palm oil issuer PT Mahkota Group Tbk (MGRO) will focus on developing downstream in 2020. Just so you know, in early November this year MGRO through its subsidiary PT Belian Inti Mekar has acquired a downstream factory owned by PT Mahkota Andalan Sawit.

Mahkota Group Corporate Secretary Elvi explained that the acquisition of a Palm Oil Mill (PKS) in South Sumatra on November 8, 2019 is expected to support the refinery plant that MGRO is developing in Dumai, Riau.

“MGRO production facilities through subsidiaries for cooking oil products and margarine raw materials will be derivative products from the refinery plant which will soon be operational in 2020,” he explained to Kontan.co.id, Thursday (11/28).

According to Kontan previous records, the newly acquired PKS factory has a production capacity of 45 tons of FFB per hour. The mill will be used to support the supply of CPO for the mill.
 
This refinery plant will produce CPO derivative products such as Olein or cooking oil, strearin for margarine or oleochemical raw materials with a production capacity of 1,500 tons of cooking oil per day. Now in 2020, the Mahkota Group plans to acquire the upstream sector, namely oil palm plantations in South Sumatra.

The investment value is still tentative. However, Elvi ensured that this corporate action would take place in the first semester of 2020. All of them will be financed with the company's internal funds.

Until now, the Mahkota Group's production facilities have reached 7 Palm Oil Mills with details of two factories in North Sumatra, four in Riau, and one in South Sumatra.

Launching the company's financial report in the third quarter of 2019, Mahkota Group posted a decline in revenue and profit. Both were depressed due to the factor of Crude Palm Oil (CPO) and PK prices which globally fell.

Elvi explained further operationally, CPO production had increased. Until September 2019 the Mahkota Group recorded CPO production of 158,072 tons or grew 3.77% compared to the same period in the previous year.

Source : https://industri.kontan.co.id/news/mahkota-group-mgro-fokus-kembangkan-hilirisasi-di-2020