PPB GROUP TO INVEST US$50 MLN IN TWO NEW FLOUR MILLS

KUALA LUMPUR, Sept 2 (Bernama) -- Well diversified local company PPB Group Bhd
plans to set up another two flour mills with an investment of about US$50
million to expand its flour and feed milling division.

Managing director Tan Gee Sooi said the group was in the midst of deciding on
the locations of the mills in Indonesia and Vietnam.

The mill in Indonesia is expected to be set up by next year and that in Vietnam
by next year or 2012, he said at a press and analyst briefing Thursday.

"We are in talks with landowners in both countries for the flour mill sites,"
Tan said.

"In Indonesia, we have already identified a site and now in talks with the owner
while in Vietnam, several locations have been looked into and we have started
tentative talks but nothing tangible has been decided," he said.

According to him, the site in Vietnam is likely be located in northern Vietnam
while that in Indonesia may be in Java Island or Sumatra.

Currently, PPB has three flour mills overseas, located in Indonesia (51 per cent
stake), Vietnam (100 per cent) and Thailand (43.3 per cent), and five locally
with a 43 per cent market share.

The flour mill in Indonesia, which started operations in October 2009 with an
investment of US$35 million, has a 750,000-tonne wheat production per day.

PPB's main business is food production and processing besides investments in a
chain of cinemas, property development, waste management and utilities, and
consumer product distributions.

The group recorded an unaudited pre-tax profit for continuing operations of
RM628 million for the first half this year, up from RM626 million the same
period last year.

Revenue was RM1.08 million in the first half of the year, up four per cent from
RM1.04 million previously.

In January, PBB completed the disposal of its sugar-related assets to Felda
Global Ventures Holding Sdn Bhd to record a gain of RM838 million, hence
contributing to profit for the period, which increased to RM1.447 billion.

The company also plans to launch its first bakery business in Pulau Indah with a
capital expenditure of RM100 million, which is considered synergistic to its
existing businesses.

"We aim to open in first quarter next year and will be carrying out trial run
for sales end of this year," Tan said.

"It is situated opposite to our existing flour mill in Indonesia. We are
confident of getting a share from this business but it will take few years to
see it," he said.

In expanding its film exhibition and distribution division, the group will be
opening another five Golden Screen Cinemas (GSC) with a capital expenditure of
RM60 million.

PPB senior manager of corporate affairs Koh Mei Lee, who is also GSC chief
executive, said four cinemas, located in Melaka, Shah Alam, Kelana Jaya and
Mentakab, would be opened next year while another new cinema would be located in
NU Sentral, KL Sentral.

"Currently, we have 183 screens in 23 locations and the new openings will add
another 45 screens," she said.

On the property division, Tan said the group would continue explore new landbank
at strategic locations and also continue to review and strategise to ensure
businss growth and profitability.
-- BERNAMA