Indonesia's largest producer of poultry feed, Day Old Chicks and processed chicken PT Charoen Pokphand Indonesia Tbk has alocated Rp 2 trillion (USD$206 million) for the company’s 2013 capital expenditure (capaex).
This figure is 11 percent (Rp 1.8 trillion) more than the company allocated in 2012.
The USD$206 million will be used towards the expanision of production in its chicken breeding, livestock feed and processed food segments.
Director of Charoen Pokphand Indonesia, Ong Mei Sian said "Fifty percent of the capex is allotted for chicken breeding, 25 percent for livestock feed and 25 percent for processed food."
Bank loans will make up $205 million of the financing, while the remainder will come from internal funds.
The expansion is expected to increase the company’s production capacity of processed chicken meet by 33 percent by the end of the year, from 6,000 tonnes to 8,000 tonnes.
PT Charoen Pokphand Indonesia Tbk was established in 1972 with Jakarta's first high-volume feed mill manufacturing poultry feed. Since then the Company has grown to meet demand and now has a network of feed and poultry production facilities in Balaraja (West Java), Semarang (Central Java), Sepanjang and Krian (East Java), Bandar Lampung (Lampung), Medan (North Sumatra) and Makassar (South Sulawesi).