Jakarta – PT. Sierad Produce Tbk, (SIPD) is investing Rp 800 billion this year. The aforementioned fund is going to be used to construct some additional facilities.

The additional facilities to be constructed are, among other things, breeding farms and hatcheries in Lebak, Banten, in an area of 206 hectare.  In addition, the Company also construct a chicken slaughtering house in Mojokerto, East Java, commercial farm, Belmart booth and storage facilities in Balaraja, Banten and Sidoarjo, East Java.

“The construction of these facilities has been carried out since the fourth quarter of 2010 and will be continued this year. The source of the investment financing is originating from self financing and bank loan”, said the Head of the Corporate Secretary of Sierad Produce Elies Lestari Setiawan in a press release in Jakarta, Monday (11/4).

Elies clarified that on April 5, 2011, the Company signed a working capital credit agreement with PT. Bukopin Tbk in the amount of USD 20 million. Earlier, the Company has received a Rp 75 billion loan from Bukopin.

In addition, added Elies, the Company has also obtained loans from domestic and overseas banks. “Our leverage ratio is still relatively low; as the result, financing from banks is the best alternative for the Company”, said Elies.

Throughout 2010, Sierad Produce booked a net income of Rp 3.6 trillion which increases by 12.5% from the previous year, which was in the amount of Rp 3.2 trillion. Meanwhile, the net income increased by 67% to be Rp 61 billion in comparison with the income of 2009 in the amount of Rp 37 billion.

Elies stated that the increase of the profit and income of the last year was supported by the production efficiency and improvement, good inventory planning and increase of the average selling price.