ID :
165540
Thu, 03/03/2011 - 09:49
Auther :
Shortlink :
https://oananews.org//node/165540
The shortlink copeid
PPB TO EXPAND FLOUR MILL BUSINESS IN INDONESIA, VIETNAM
KUALA LUMPUR, March 3 (Bernama) -- PPB Group Bhd will expand its flour mill business in Indonesia and Vietnam over the next two years.
"We intend to increase our Indonesian mill production capacity to 2,000 metric tonnes daily, from the current capacity of 1,000 metric tonnes, with an indicative investment of US$30 million," Managing Director, Tan Gee Sooi told a press conference here Thursday.
PPB, a well-diversified conglomerate engaged in a wide spectrum of
activities including plantations, manufacturing & services and property
development, also intends to invest about RM50 million to double its Vietnam flour mill production capacity to 800 metric tonnes per day. (US$1=RM3.3)
"However, the Vietnam venture would not be so simple, due to the
licensing process and also fluctuations in the Vietnam Dong," he said.
He added, the group's Indonesian business, had a lot more potential for growth as well.
"Our Indonesia operations started just a year ago and has not really reached its optimum.
"The last time we compared, the Indonesia operations is slightly more than one third of our West Malaysia operations, and its utilisation rate stood at only 60 per cent compared to the local 72 per cent to 75 per cent," he explained.
PPB recently disposed off its 20 per cent stake in FFM Bhd to Wilmar International in return for acquiring a similar percentage in Wilmar International's China flour mills.
The company said funding for the exercise will be generated internally.
"I don't think we have any figures on the acquisition yet, as the size of these mills are huge and those in different provinces and cities may have varying rules by which they are governed," Tan said.
As a comparison, he highlighted that a mill of a daily 1,200 metric tonnes production capacity is considered small in China.
"Locally, a daily 1,000 metric tonnes production capacity mill is considered at its peak already," he said.
Moving forward, the group has also allocated about RM190 million as capital expenditure - excluding its Indonesian, Vietnam and China ventures - for the next few years with 60 per cent to be utilised this year by its subsidiaries.
One subsidiary, FFM Bhd, stands to receive RM65 million in capex, while two others, Chemquest Group and PPB Harta Bina Sdn Bhd get RM5 million and RM3.5 million each respectively.
Of the capex, RM100 million will be utilised to open eight additional cinemas under Golden Screen Cinemas Sdn Bhd (GSC) over a period of three years, and RM15 million more for internal fittings upgrade.
GSC Chief Executive Koh Mei Lee said three cinemas will be opened this year at the AEON Melaka, Paradigm Mall in Petaling Jaya and one more in Mentakab, in east coast state of Pahang.
"With the additional eight cinemas, the total number will increase to 75. For the last few years, we have actually enjoyed double digit growth of more than 20 per cent.
"Of course competition has increased but with the higher number of cinemas and an attractive line up of films, we should be able to achieve double digit growth for this year and in 2012 as well," she added.
"We intend to increase our Indonesian mill production capacity to 2,000 metric tonnes daily, from the current capacity of 1,000 metric tonnes, with an indicative investment of US$30 million," Managing Director, Tan Gee Sooi told a press conference here Thursday.
PPB, a well-diversified conglomerate engaged in a wide spectrum of
activities including plantations, manufacturing & services and property
development, also intends to invest about RM50 million to double its Vietnam flour mill production capacity to 800 metric tonnes per day. (US$1=RM3.3)
"However, the Vietnam venture would not be so simple, due to the
licensing process and also fluctuations in the Vietnam Dong," he said.
He added, the group's Indonesian business, had a lot more potential for growth as well.
"Our Indonesia operations started just a year ago and has not really reached its optimum.
"The last time we compared, the Indonesia operations is slightly more than one third of our West Malaysia operations, and its utilisation rate stood at only 60 per cent compared to the local 72 per cent to 75 per cent," he explained.
PPB recently disposed off its 20 per cent stake in FFM Bhd to Wilmar International in return for acquiring a similar percentage in Wilmar International's China flour mills.
The company said funding for the exercise will be generated internally.
"I don't think we have any figures on the acquisition yet, as the size of these mills are huge and those in different provinces and cities may have varying rules by which they are governed," Tan said.
As a comparison, he highlighted that a mill of a daily 1,200 metric tonnes production capacity is considered small in China.
"Locally, a daily 1,000 metric tonnes production capacity mill is considered at its peak already," he said.
Moving forward, the group has also allocated about RM190 million as capital expenditure - excluding its Indonesian, Vietnam and China ventures - for the next few years with 60 per cent to be utilised this year by its subsidiaries.
One subsidiary, FFM Bhd, stands to receive RM65 million in capex, while two others, Chemquest Group and PPB Harta Bina Sdn Bhd get RM5 million and RM3.5 million each respectively.
Of the capex, RM100 million will be utilised to open eight additional cinemas under Golden Screen Cinemas Sdn Bhd (GSC) over a period of three years, and RM15 million more for internal fittings upgrade.
GSC Chief Executive Koh Mei Lee said three cinemas will be opened this year at the AEON Melaka, Paradigm Mall in Petaling Jaya and one more in Mentakab, in east coast state of Pahang.
"With the additional eight cinemas, the total number will increase to 75. For the last few years, we have actually enjoyed double digit growth of more than 20 per cent.
"Of course competition has increased but with the higher number of cinemas and an attractive line up of films, we should be able to achieve double digit growth for this year and in 2012 as well," she added.
