Multi Bintang to boost plant capacity

JAKARTA: PT Multi Bintang Indonesia Tbk, the leading beer and beverage maker in Indonesia, plans to increase capacity of its factories to meet the target sales increase of 20% to IDR2 trillion this year from IDR1.79 trillion last year.The company has prepared 32 million euro (IDR386.62 billion) for 4 years ending in 2012 to increase the production of its factory in Tangerang to 800,000 hectoliter annually.The improvement in the factory includes replacing old machines with new ones, installing new boiler machine, replacing power distribution, tanks and filtrating system.In order to increase production capacity, we will use fund from the companys internal cash, President Director Leonard Cornelis Jorden Evers said after attending the company general shareholders meeting yesterday.Besides, the company will pursue the target growth of 20% by developing products and expanding market share, increasing penetration and consumption, as well as tapping more consumers of the companys existing products.We will keep improving ability and competency, investing in our brands and expanding sales and distribution network to meet the target.Multi Bintang currently owns two production units, in Sampangagung, Mojokerto and in Brewery, Tangerang with total capacity 1.6 million hectoliter annually. The company through its subsidiary, PT Multi Bintang Indonesia Niaga, plans to add more marketing and sales offices in big cities across the country from Medan, Norht Sumatra to Jayapura, Papua.Hendri Effendi, Head Research at PT Citi Pacific Indonesia, viewed that the MLBI-coded company stock is similar to cigarette companies. It means that the listed company may increase its selling price at most 10% after excise tariff rose by 6% as of April 1, 2011. (T04/NOM)