JAKARTA - Noticing full utilisation rate of its mills, PT Cerestar Indonesia Tbk (TRGU), a flour manufacturer, plans to raise processing capacity of its mill in Gresik by another 600 metric ton (MT) per day next year.

As of now, TRGU records total milling capacity in Gresik factory of 1,600 MT/day. Starting with 500 MT/day in 2014, the company continued to expand its capacity in 2016 by another 500 MT, and extra 600 MT in 2018.

"With the development of new milling facility of 600 MT/day, total milling capacity will reach 2,200 MT/day in 2024," said Indra Irawan, President Director of TRGU during Annual Public Expose 2023 of Cerestar Indonesia today (13/12).

Furthermore, Irawan claimed that the utilisation rate of its company's mills has reached 100% since 2022. Therefore, the company projects the operation of this additional milling facility in Gresik to begin in Q1 2024.

TRGU reportedly spent approximately IDR 200 billion for this upcoming additional facility, taken out of its IPO proceeds, totalling IDR 300 billion.

Another third has also been channelled to its subsidiary, PT Agristar Grain Industry, for establishing a processing and packing facility in Cilegon for its animal feed business line. This facility only began to operate in Q3 2023.

Until Q3 2023, TRGU booked revenue of IDR 3.93 trillion, a 54.1% year-on-year (yoy) increase. However, unfavourable market condition tipped over the net profit, plummeting 93.5% yoy to IDR 5 billion at the end September 2023. (ZH)