PT Malindo Feedmill plans to increase production capacity of its poultry feed business by more than 50 percent from 900,000 tons per year, according to reports.

The company is nearing completion on construction of a new feed mill in Semarang, Central Java. It also has plans to build another feed mill in Makassar, South Sulawesi.

“The Semarang feed mill is currently in the completion phase,” Malindo corporate secretary Rudy Hartono Husin said in a report. “I hope the mill can start operation next month at the latest,” he said.

After the Semarang feed mill is operational, the company’s output capacity is expected to increase by 50 percent. The Makassar facility will increase output by another 20 percent.

Husin said each mill required investment of around IDR200 billion (US$16.9 million).

Malindo director Rewin Hanrahan said the Semarang feed mill would have production capacity of 360,000 tons per year. The same capacity is targeted for the Makassar feed mill.

“However, the company probably will build the Makassar feed mill with a capacity of 240,000 tons per year at first,” he said in a report.

Husin said the company allocated capital expenditure of IDR500 billion (US$41.9 million) this year, which is 20 percent more than last year.

“The company has absorbed around 40 percent of it, mainly for the development of the two new mills,” he said.