Japfa spends over $11 million on poultry factories

The company will issue its first bond, worth Rp 500 billion ($5.6 million), in June 2007, for the new factories, which are currently under construction in their location in Bati Bati, South Kalimantan, and in Padang, West Sumatra, Indonesia.

“The Bati Bati plant is expected to commence operations by the end of this year, while the Padang plant, which is still in the early stages of construction, will begin operations in the first quarter of 2008,” said Japfa director Herry Wibowo.

With the establishment of these two factories with a total capacity of 360,000 tonnes per year, the company’s poultry processing capacity will increase to 2.08 million tonnes from the current 1.72 million tonnes.

Japfa, which currently operates seven poultry processing plants in Java, Sumatra and Sulawesi, is also building a corn processing plant in Grobogan, Central Java, which will supply raw materials to its poultry processing factories.