Agri First to more than double wheat flour production capacity

Tue, 04/17/2012 - 08:43

Wheat flour producer PT Agri First plans to boost production capacity by 133 percent amid rising domestic demand for wheat flour.

Company founding owner Tan SW was quoted on Tuesday by Kontan as saying that the expansion project would be completed in 2013, by which time production capacity would increase to 350,000 tons per year from the current 150,000 tons per year.

Agri First, which was formerly a wheat importer but then turned to wheat flour producer to grab higher margin, will import raw material from Australia, the US and Canada. 

The North Sumatra-based company, which sells about 70 percent of its products in the province, plans to also expand in Java by setting up a production facility there. 

According to data from the Indonesian Wheat Flour Producers Association (Aptindo), two wheat importers have so far switched business into wheat flour production, a move that might reduce the country’s import of wheat flour products.

But as result, import of wheat will likely increase.  According to Franciscus Welirang, Aptindo Head, wheat import this year is estimated to increase by 6 percent to 6.6 million tons from 6.2 million tons.  “Production capacity increases by about 400,000 tons every year,” he said. (rei)

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