May 27, 2011

 

CP Indonesia to allocate US$174 million for expansion

 

 

PT Charoen Pokphand Indonesia (CPI) will designate IDR1.5 trillion (US$174 million) in 2011 for capital expenditures to support expansion plans.

 

CPI director Ong Mei Sian said that the funds would be sourced internally, even though bank loans were available.

 

She added that the company would spend the funds to increase the capacity at existing plants, relocate an existing plant in Lampung and build a new plant in East Java.

 

CPI, the local subsidiary of the Thai conglomerate Charoen Pokphand Foods, currently has seven plants - one each in West Java, Central Java, Lampung, North Sumatra and South Sulawesi and two plants in East Java.

 

The company produces poultry feed, day-old chickens (DOC) and processed chicken.

 

CPI president director Thomas Effendy told reporters the company was targeting to increase sales 15% and profits 10% this year with the investment.

 

CPI booked IDR15.07 trillion (US$1.8 billion) in net sales in 2010 of which 75% was contributed by poultry feed products, 15% by DOC and the rest by processed chicken.

 

The company's annual meeting approved to pay out 29.53% of last year's net profit of IDR2.21 trillion (US$0.3 billion), giving shareholders a dividend of IDR39.80 (US$0.0046) per share.