PT Tunas Baru Lampung Tbk (TBLA) is exploring an opportunity to expand into sugar business in 2014-2015.
For the initial path, Tunas Baru will construct sugar refinery facility with the capacity of 600 tons per hour by end of this year. In 2014-2015, the company expects to establish integrated sugar business.
Tunas Baru plans to set up the facility at Way Lunik, Lampung. It is aimed to refine imported raw sugar.
According to Hary, Tunas Baru's Corporate Secretary as quoted by Kontan today, the demand is 4 million tons of sugar a year, while the local supplier can provide 2 million tons.
Tunas Baru expects to derive Rp1.31 trillion-Rp1.53 trillion sales from the sugar business. The estimation is based on the sugar price of Rp6,000-Rp7,000 per kg. The company requires Rp500 billion investment to construct the sugar refinery facility.
Disclosure: No position at the stock mentioned above.
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