(Jakarta, Bisnis Indonesia) PT Sierad Produce Tbk is finalizing loans commitment worth Rp 200 billion from a number of banks to finance the Company’s expansion plan, to increase the number of chicken-houses in a number of places.
Sierad Corporate Secretary Elies Lestari Setiawan said the Company is in negotiation with several banks to secure the loans in the hope that the fund is already available for use by the second semester of 2009.
“We will use the money to build chicken houses early next year. The funds will make up 65% of our total investment which amounts to Rp310 billion,” said Elies to Bisnis yesterday.
Elies said that the Company would build new chicken houses to boost production of broiler chickens up to 450,000 per week and layer chickens up to 115,000 a week.
The fund that the Company is seeking to raise is not part of Sierad’s working capital. The Company has managed to source loans totaling up to Rp225 billion from Bank BNI to finance its working capital.
As of end of July Sierad has booked a total of Rp 40 billion in net profit, or near this year’s target of Rp 46 billion and the Company is optimistic to book Rp 2 trillion in total sales revenue this year.
The company is allocating Rp 20 billion for capital expenditure this year.