JAKARTA (Yosefardi) – PT BW Plantation Tbk (BWPT) will establish a new palm mill, the fifth facility, this year which costs US$11.25 million, funded by internal cash.

The new mill, located in Central Kalimantan province, will have capacity of 45 tons of fresh fruit bunches (FFB).

The construction will start in fourth quarter of this year and is targeted to commence production by third quarter of 2015.

The company has yet to report its financial performance for first quarter of this year. In 2013, BWPT booked net profit of Rp181.78 billion, dropped by 30.5% from Rp262 billion in 2012 on squeezed margins from falling CPO prices.

Revenues rose 21.2% to Rp1.14 trillion from previous Rp944 billion while operating profit fell 21.8% to Rp326 billion from earlier Rp417 billion. Its assets totaled Rp6.2 trillion while liability amounted Rp4.02 trillion.