Publicly listed poultry company Malindo Feedmill has allocated Rp 200 billion (US$14.8 million) in capital expenditure (capex) this year for a new feed mill in Lampung to increase its production capacity to 1.5 million tons per year.

Malindo director Rewin Hanrahan said the new feed mill, the sixth to be operated by the company, was expected to be operational by the end of 2017. Malindo is one of the country’s big players in the animal feed and day-old chicks business.

“The development of our new feed mill will cost around Rp 200 billion to Rp 300 billion, with a production capacity of 150,000 metric tons per year,” Malindo finance director Rudy Hartono Husin said at a shareholders meeting in Jakarta on Friday.

He added that 70 percent of the capex funds would come from bank loans.

In the first quarter of this year, Malindo recorded a 15.87 percent increase in net sales to Rp 1.3 trillion. The company’s net profit grew 187.6 percent year-on-year to Rp 52.15 billion.

The achievement was driven by an 11.1 percent increase in poultry feed sales, a 44.1 percent hike in day-old chick sales and 1.7 percent sales growth in the broiler business. (vps/ags)

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