Increase in Production Capacity of Indonesian Flour Mill Company
- Responding to diversified food needs accompanying economic development -

  • Food & Consumer Services

2017-12-19

Toyota Tsusho Corporation (hereinafter referred to as "Toyota Tsusho"), together with FKS Capital (hereinafter referred to as "FKS") of (hereinafter referred to as "BFM"), gradually over the next three years. The facilthe FKS Group, a leader in the Food and Agri sector, from global sourcing and distribution and logistics for grains and oils seeds in destination, and Malayan Flour Mills Berhad (hereinafter referred to as "MFM"), Malaysia's leading flour manufacturer, will increase the flour production capacity of milling company PT Bungasari Flour Mills Indonesia ities to be expanded are scheduled to start operation gradually from mid-2019, and when all are on-line in 2021, milling capacity will have been doubled.

Background/Aims

Toyota Tsusho established BFM in 2012 through a joint venture between FKS and MFM and has been engaged in the milling business to respond to the diversifying food needs of consumers in Indonesia, which is undergoing strong economic and population growth. As Indonesia continues its remarkable economic development, consumption of food made with processed flour, such as bread, noodles and confectionery, will grow, and the consumption of flour is expected to increase 4–5% per year*. Against this background, Toyota Tsusho decided to increase the capacity to contribute to production expansion and quality improvement of foods containing processed flour in Indonesia.

Planned Facility Expansion

This investment, valued at approximately 7.5 billion yen in total, will be used to gradually expand flour mill facilities. Construction will begin in 2018 and be completed in 2020, aiming at full operation from the start of 2021. Through this, combined with existing facilities, flour production capacity of the plant will grow to 3,000 tons/day.

Future Outlook

By increasing the production capacity of BFM, Toyota Tsusho will further deepen its relationships with business partners and respond to diversifying consumer needs, aiming to expand its share in Indonesia’s processed foods market.

Looking forward, Toyota Tsusho will work on building a grain processing value chain not only in Indonesia but on a global scale.

Overview
Company name
PT Bungasari Flour Mills Indonesia
Manufacturing plant site
Suburb of Jakarta, Indonesia.
Total investment amount
Approximately JPY 7.5 billion
Shareholders
FKS: 40%, MFM: 30%, Toyota Tsusho: 30%
Establishment
December 2012
Representative
President Director, Grant Lutz
Manufacturing plant site area
11Ha
Flour production capacity
1,500 tons/day (present) → 3,000 tons/day (2021)


*Source: United States Department of Agriculture “Wheat trade long-term projections”

The information in this release is current as of the date of announcement.
Please note that information may change after the date of announcement. Thank you in advance for your understanding.