Palm oil producer, PT Dharma Satya Nusantara Tbk (IDX: DSNG) plans to build two new palm oil mills in East Kalimantan starting this year - Photo by the Company

JAKARTA (TheInsiderStories) – Palm oil producer, PT Dharma Satya Nusantara Tbk (IDX: DSNG) plans to build two new palm oil mills in East Kalimantan starting this year. The issuer also plans to inaugurates Bio-CNG plant in the third quarter of this year.

“We hope that in the fourth quarter of 2020, the development of the new factory will be continued so to be completed in 2021. The investment that will be absorbed for each factory is Rp250 billion,” said the president director, Andrianto Oetomo, on Thursday (09/17).

He explained, the factory in East Kutai will have a processing capacity 360,000 tons of Fresh Fruit Bunches (FFB) per year. Other plant in Nangabulik, Central Kalimantan, its expecting has a processing capacity of 270,000 tons of FFB per year.

Currently, the company has planted area of ​​112,450 hectares and 10 mills with a processing capacity of 570 tons per hour. After the completion of the construction in 2021, the management said, Dharma Satya will operate 12 factories and have capacity productions 1.2 million tons of FFB.

Dharma Satya also has a wood processing factory that produces panels, engineered flooring and engineered doors in collaboration with Japan’ Daiken Corporation. For this year the issuer prepared capital expenditure Rp1.1 trillion (US$74.32 million). To support the plans, recently the company received an additional funds from the bond issuances worth of Rp451 billion.

Oetomo adds, the Bio-CNG Plant facility located in East Kutai and was built since the end of 2018 aims to reduce the greenhouse gas emissions and saving up to two million liters of diesel per annum. He explained that the investment for the plant Rp90 billion.

The Bio CNG Plant, will create a reduction in greenhouse gas emissions of more than 50,000 tons of CO2 or a reduction of 11,000 units of passenger vehicles or the equivalent of recycling 17,000 tons of waste. According to him, the Bio-CNG Plant not only has an impact on cost efficiency, but also provides additional income to the company.

He also reported, in the first semester of this year, the CPO production reached 312,000 tons, up 19 percent compared to the same period last year. From the financial side, the company booked a net profit of Rp180 billion at the same period.

US$1: Rp14,800

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