MGRO to Expand the Downstream Sector

By Editorial Team 25/09/2019
Summary

PT Mahkota Group Tbk (MGRO) will spend Rp 120 billion to purchase an oil palm factory owned by PT Mahkota Andalan Sawit in South Sumatra. One of MGRO’s sub-holdings, PT Berlian Inti Mekar, will carry out the corporate action. MGRO President Director revealed to Kontan that the acquisition funds came from bank loans. He wished the acquisition process to finish before the end of this year and could directly contribute to Mahkota Group’s net revenue and profit.

The oil-palm-processing factory targeted by MGRO has a production capacity of 45 million tons of oil palm bunches per hour. The existence of the factory will increase the supply of crude palm oil (CPO) to support the soon-to-be-operated refinery and kernel crushing facilities in Dumai, Riau. The refinery and kernel crushing facilities, producing some derivative products like olein and palm kernel oil, will accelerate Mahkota Group’s business expansion to the downstream sector.

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