PT Eagle High Plantation to Double Production with Two New CPO Mills
Publicly-listed PT Eagle High Plantation will be spending US$15 million, or one quarter of its total allocated capital expenditure for the year, to build two new palm oil mills in West Kalimantan and Papua as part of its strategic plan to double output within five years.
Each of the new mills will have the capacity to process 45 tons of fresh fruit bunches per hour into crude palm oil (CPO). This added capacity will be in addition to the existing capacity of 385 tons per hour at the group’s seven currently opperating mills.
The company currently has 425,000 hectares of land in Kalimantan, Sumatra, and Papua, with 151,000 hectares under cultivation. Of this cultivated area, 97,000 hectares are considered mature plantations.
In addition to building two new mills, the company has also signed an agreement with the Sumberdaya Sewatama Group power company to build a palm oil-based biogas facility in South Kalimantan that will convert liquid waste into a fuel for power generation.
On June 12, the world’s largest CPO producer, Malaysia—based Felda Global Ventures Holdings Bhd acquired the company, holding a 37% stake in the operation. Rahawali Corpora holds 31.5% and the public holds the balance.
The company has not yet set revenue or production targets for 2015 because of the belief it will face a high level of volatility in CPO prices, however during the first quarter the company posted a 43% year on year increase in sales, although it also saw a dive in profits due to higher operating costs.