PPB INVESTMENTS IN CHINA FLOUR MILLS PROMISING IN LONG-TERM, SAYS MD

KUALA LUMPUR, Aug 26 (Bernama) -- Conglomerate PPB Group expects its
investments in flour mills in China to yield positive results, moving forward,
says managing director Tan Gee Sooi.

Earlier this year, the group disposed its 20 per cent stake in FFM Bhd to
Wilmar International, in return to acquire a similar percentage in the latter's
flour mills in China.

Tan said PPB was in final talks with one of the mills management and many
such acquisition negotiations would be held in future.

"We started the negotiations in less than six months," he said, adding that
under the deal, PPB and Wilmar would be building new flour mills.

Tan said a flour mill with a 1,000 metric tonnes daily production capacity
would easily cost between US$30 million and US$40 million.

"As our stake is 20 per cent in the joint venture, our investment will be
relatively small, may be at US$7 million or US$10 million," he told a media
briefing.

Tan said the mills revenue would not be reflected in the company's financial
results as it would take at least 14 to 16 months for a mill to be operational.