17 September 2019

MEDAN - PT Mahkota Group Tbk (MGRO) through one of its subsidiaries in the near future plans to acquire a palm oil mill worth IDR 120 billion in South Sumatra Province.

Usli Sarsi, President Director of Mahkota Group, said the program to recognize the 45 ton per hour capacity palm oil mill is a further step of the massive expansion plan into the downstream palm oil industry.

The acquisition process is expected to be completed before the end of this year, so that later it will contribute significantly to increasing revenue and profit on a consolidated basis in accordance with the targets that have been determined,” Usli said.

In addition to adding palm oil mills, MGRO's palm oil refinery construction project is also nearing completion. This refinery plant will produce CPO derivative products such as Olein or cooking oil, Stearin, margarine raw materials or Oleochemicals.

“The refinery plant will be operational soon. The administrative affairs of marketing the refined products are also being completed in parallel. When the refinery is in production, the company's long-term financial performance will be more positive,” Usli said.

The refinery plant with a cooking oil production capacity of 1,500 tons per day owned by MGRO is the company's first step into a variety of other CPO downstream products. The company is committed to continuing to innovate to produce other downstream products from CPO.

The construction of a kernel crushing plant that will process palm kernels into palm kernel oil has also entered the final stage. This plant will be able to process 200-400 tons of palm kernel per day. (Adv)