INDONESIA – Japfa Comfeed has announced it is to boost its poultry business after a recent divestment.
PT Japfa Comfeed Indonesia Tbk will boost poultry business following the sale of a unit, PT So Good Food, Kontan reported, quoting the Senior Vice President and Deputy Head of Corporate Finance, Putut Djagiri.
Bisnis Indonesia reports that Japfa Comfeed divested So Good Food, a frozen food manufacturer, to Malvolia Pte Ltd for US$100 million last May. The company will use the proceeds to finance its capital expenditure.
Japfa Comfeed finances its capital expenditure from bank loans and internal cash. It plans to build two poultry factories in Central Java worth 250 billion rupiah (IDR) each, both scheduled to operate this year. The company targets to boost its production capacity by 15 per cent.
The capital expenditure will be used to finance other plans, including adding its egg incubators and increasing the house capacity. Japfa Comfeed also sets to strengthen its farm commercial up to 200 million chickens per year.
Information ThePoultrySite News Desk