JAKARTA (TheInsiderStories) – Indofood Agri Resources Ltd (IndoAgri) through its subsidiary IndoAgri Brazil joined with JF Investimentos S.A., agreed to form a new joint venture Canapolis, said the spokeswoman in official announcement on Monday (19/02).
The subsidiary of PT Indofood Sukses Makmur Tbk (IDX: INDF) and JV Investimentos will own a 50 percent interest in the joint venture each. Both parties will deposit initial capital of US$14.4 million. INDF Corporate Secretary Elly Putranti said, Indoagri has inject the capital on Feb. 15.
She added, Canapolis will focus on producing sugar. The company had previously acquired a sugar factory with a capacity of 1.8 million tons of sugar cane milling.
In addition to the plant, Canapolis controlled a land area of 6,048 hectares through a local court auction process, after the previous owners declared bankrupt.
The acquisition value at that time was $42 million, which was paid in installments until June 2019. Canapolis expects to start operations in 2020, after planting sugar cane and rehabilitation of the factory.