Jakarta, Indonesia -- Publicly listed animal feed and processed chicken producer PT Charoen Pokphand Indonesia (CPI) says it will allocate Rp 1.5 trillion (US$174 million) in 2011 for capital expenditures to support expansion plans.
CPI director Ong Mei Sian said on Wednesday that the funds would be sourced internally, even though bank loans were available.
She added that the company would spend the funds to increase the capacity at existing plants, relocate an existing plant in Lampung and build a new plant in East Java.
CPI, the local subsidiary of the Thai conglomerate Charoen Pokphand Foods, currently has seven plants – one each in West Java, Central Java, Lampung, North Sumatra and South Sulawesi and two plants in East Java.
The company produces poultry feed, day-old chickens (DOC) and processed chicken.
CPI president director Thomas Effendy told reporters the company was targeting to increase sales 15 percent and profits 10 percent this year with the investment.
CPI booked Rp 15.07 trillion in net sales in 2010 of which 75 percent was contributed by poultry feed products, 15 percent by DOC and the rest by processed chicken.
The company's annual meeting approved to pay out 29.53 percent of last year's net profit of Rp 2.21 trillion, giving shareholders a dividend of Rp 39.80 per share.