According to the Corporate Secretary of Sierad Elies Lestari Setiawan, the Company is now trying to seek the sources of expansion fund from internal treasury and bank loans. “There are local and foreign banks providing the loan”, she said yesterday (26/6). 

At present, Sierad is making approach to obtain such loan. However, in the early stage, she is optimistic to obtain loan Rp.43 billion to finance the development of our office buildings “We hope the loan will be released next month”, Elies said. 

Elies further expects that the next loan of Rp 310 billion be released in quarter IIII 2008.

Sierad will allocate the fund of Rp 353 billion to finance three of its business plans this year. First, Sierad will purchase a plot of land covering an area of 7.050 square meters in Bumi Serpong Damai (BSD) city, Tangerang. At the location, such SIPD-coded issuer will construct an office building. Total investment value for the office building is Rp 43 billion.  

Second, SIPD will develop 40 units of breeding farms. Through this step, Sierad expects an increased production volume of fryer chickens from 1,6 million to 2,05 million per week. On the other hand, the production volume of layer chicken will also increase from 400.000 to 515.000 per week.  

Third, Sierad is planning to make addition of 24 hatchery machines or breeding to produce 670.000 chicks per week.

Elies expressed that the expansion is in consistency with SIPD programs to increase the production and sales of animal feed.  

Sierad’s net earnings until the end of May doubled to Rp.20 billion.

“At present, the production capacity of animal feed is still 50%, through extension there is a potential increase to 85%”, she said.   

Until the end of last May, Sierad recorded a sum of Rp. 881 billion or an increase of 62% from the sales volume in the same period last year. As a result, net earning of SIPD in first five months this year will increase double to Rp 20 billion.