JAKARTA (Yosefardi) – Plantation firm PT Eagle High Plantations Tbk (BWPT) allocates Rp140-160 billion for building crude palm oil (CPO) mill in East Kalimantan.

The CPO mill will have production capacity of 30 tons per hour. The construction will start in mid next year, to commence operation in late 2017 or early 2018.

BWPT is now building CPO mills in West Kalimantan and Papua which cost Rp200 billion and Rp250 billion respectively. The mills are designed to have production capacity of 90 tons per hour.

BWPT posted net loss of Rp94 billion in the third quarter of 2015 on falling prices of CPO and squeezed operating margins. Sales revenue only grew by 10.7% while gross profit and operating profit dropped 15% and 79% respectively.