PROMISING PROSPECTS, MAHKOTA GROUP (MGRO) PURSUES PRODUCTION OF AROUND 110.000 TONS OF RBDPO
14 September 2020
Palm oil issuer PT Mahkota Group Tbk wants to spur the palm derivative product business. The proof, until the end of the year, the palm oil issuer coded MGRO shares targets to produce around 110,000 tons of Refined, Bleached and Deodorized Palm Oil (RBDPO).
Not without reason the company is aiming for this target. MGRO Corporate Secretary Elvi explained that the market potential for RBDPO is very large, because these palm oil derivative products are needed as basic raw materials in the manufacture of final products such as margarine, cooking oil, and other basic necessities.
“Recently, RBDPO has been processed into B100 biodiesel fuel,” Elvi added to Kontan.co.id, Thursday (10/9).
The RBDPO production process is carried out at the company's new refinery plant located in Bengkalis, Riau. The plant was built at the end of 2018 and started operations in the first half of this year.
Initially, the plant was used to produce 3,000 tons. This is smaller than the installed capacity of the new plant, which is capable of producing 1,500 tons of RBDPO a day.
As of July 2020, MGRO's total RBDPO production volume has reached 6,143 tons. Of the total production, 60% was sold to the export market and 40% locally.
Local buyers of MGRO's RBDPO consist of oleochemical companies that use RBDPO as raw material to be processed into final products such as margarine, cooking oil, and others. Meanwhile, the majority of MGRO's RBDPO buyers in the export market are trading companies or traders.
Elvi did not mention the projected contribution of the RBDPO sales line in total sales until the end of the year. Elvi only said that the company has no plans to produce other palm derivative products besides RBDPO.
“Until the end of 2020, the company is still focusing on RBDPO, for other derivatives such as cooking oil, we are still in the process of legalization,” Elvi concluded.