Guan Chong starts grinding cocoa in Indonesia

Published: 2011/03/02

MALAYSIA'S largest cocoa processor Guan Chong Bhd (5102) has commissioned its cocoa grinding plant in Batam, Indonesia, which is expected to improve earnings significantly.

The plant boasts of an initial annual grinding capacity of 60,000 tonnes, increasing the group's total production by 75 per cent to 140,000 tonnes a year. This makes Guan Chong one of the largest cocoa processors in Asia, the company said in a statement yesterday.

The group's existing 80,000 tonnes plant in Pasir Gudang, Johor is almost fully utilised due to a rise in global demand for its cocoa ingredients, it added.

Managing director and chief executive Brandon Tay Hoe Lian said the group had shipped out about 200 MT of cocoa products just two weeks into production at its Batam plant.
He said with a grinding plant in Indonesia, the group can also benefit from processing zero-tariff raw materials.

The plant in Pasir Gudang processes cocoa beans mainly from Indonesia, which recently started to impose export tax of up to 15 per cent on Indonesia-produced cocoa beans on a schedular basis.

Last year, Guan Chong posted a net profit of RM100 million on a revenue of RM1.2 billion.

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