Malaysian-based QL Group's subsidiary in Indonesia, PT QL Agrofood, plans to put its feedmill into operation in the third quarter of this year. Director Dr Cecep Muhammad said construction started in Q3, 2013.
"The plant will have an installed capacity of 30,000 tonnes/month and will be equipped with 10 silos with a capacity of 3,600 tonnes each and technology from Germany." Dr Cecep informed that all feeds produced would be used for internal needs. At the moment, QL Indonesia's poultry farms consume about 6000-8000 tonnes of feed a month. To get better quality and fresher corn, he said the company will partner with local corn farmers in West Java province. "Efficiency and integration are the reasons behind the building of the plant," he revealed.
Earlier this year, QL Resources Berhad was granted approval from the Ministry of Justice and Human rights for the incorporation of a wholly-owned subsidiary, PT QL Feed, in Indonesia.
Set up by QL's existing subsidiaries, QL Feedingstuffs and QL Realty, the new unit's authorized and paid up share capital is USD 500,000 and USD 500,000, respectively.
The investment will be financed via internally generated funds and borrowings. The incorporation of PT QL Feed is in line with the QL Group's strategy to expand its animal feed raw materials distribution business and related products overseas.
"It's principal activity is to engage in general trading of animal feed raw materials and related products," the company said.
The incorporation of new subsidiary is not subject to any approvals from regulatory bodies or the shareholders of QL.