TRGU Increases Wheat Storage Capacity By 45 Percent

Photo: PT Cerestar Indonesia Tbk (TRGU)

JAKARTA - Wheat processing flour producer, PT Cerestar Indonesia Tbk (TRGU) will increase the storage capacity (silo) of wheat by up to 45 percent.

Previously, TRGU had added silo capacity in 2018 to 140,000 metric tons per year, and now the silo capacity located in Gresik, East Java, has been increased to 203,200 metric tons per year.

"The addition of silo capacity is an integrated step that we need to take in line with the increase in our flour production capacity," said President Director of Cerestar Indonesia, Indra Irawan in his statement, Sunday, October 27.

Meanwhile, in the third quarter of 2024, TRGU has added the production capacity of wheat flour managed by its subsidiary, PT Harvestar Flour Mills. With an additional production capacity of 600 metric tons per day, from the previous 1,600 metric tons per day, bringing the total production capacity to 2,200 metric tons per day.

Indra said the company saw that the flour business still showed promising prospects along with the increasing consumption of wheat processed products in Indonesia.

According to Indra, the Company's business prospects, which focus on processed grain products for humans and the livestock feed material segment, are supported by positive sentiment from a new government program that has the potential to benefit food producers, including animal food products.

Indra conveyed that the opportunity to increase demand for animal-based food products will automatically encourage livestock entrepreneurs to increase their production. In turn, it will increase the need for animal feed materials produced by TRGU.

To encourage increased performance growth, TRGU is focusing on increasing product diversification. The company sees that animal feed products have great potential to grow, because their market share is twice as large as the flour product, which has been TRGU's main business.

As for the first semester of 2024, TRGU has managed to record sales growth of up to 20 percent year on year (yoy), where this growth is supported by the animal feed material segment. In addition, with the operation of additional capacity at Harvestar Flour Mills, it will encourage sales of wheat flour at the end of the 2024 quarter.

Therefore, Indra said that he was optimistic that the revenue growth target of 10 percent in 2024 would be achieved.