MAHKOTA GROUP (MGRO) ENLARGES STOCKPILE TANK CAPACITY
20 March 2019
Bisnis.com, JAKARTA - Plantation company PT Mahkota Group Tbk (MGRO) will expand its stockpile tank capacity to 98,000 tons this year.
MGRO President Director Usli Sarsi revealed that the current stockpile tank capacity is still 78,000 tons. Currently, the company is in the process of adding a stockpile tank of 20,000 tons, with a capital expenditure of IDR 20 billion.
“The stockpile tank is currently full, because we partially rented it out,” he said when contacted by Bisnis.com, Tuesday (3/19/2019).
He revealed that the weak CPO price has made plantation companies hesitant to expand. According to him, the negative sentiment that has recently emerged has triggered hesitation in expansion, so that the company's stockpile tanks are now full.
Another reason why the company's stockpile tanks are full is that CPO prices have not improved. However, he said, CPO prospects will improve in the long run.
Recently, the CPO price broke through 2,200 ringgit per ton and fell back almost to the level of 2,000 ringgit per ton. On Bursa Malaysia, CPO prices at the close of trading on Tuesday (19/3/2018) rose 24 points to 2,129 points.
On the other hand, Usli assessed that negative sentiments from the European Union are indeed quite influential on the export of CPO products and their derivatives. But with the intervention of the government, he hopes, this problem can be resolved.
Reflecting on the negative sentiments often expressed by the European Union, Usli assessed that the government needs to carry out good cooperation between CPO producing countries at the regional level to counter these sentiments at the international level.
Usli added that the company canceled plans to expand into biodiesel this year. This is because MGRO is focused on preparing the construction of refineries and Kernel Crushing Plants (KCP) to enter the turnaround industry which is being aggressively promoted by the government.
Corporate Secretary of Mahkota Group Elvi added, MGRO is making an in-depth study from various sides related to the diversity of products that can be produced in the turnaround industry.
Editor : Riendy Astria