DSNG Will Develop One Palm Oil Mill This Year

Bisnis Indonesia, JAKARTA - PT Dharma Satya Nusantara Tbk. (DSNG), a palm oil and wood product listed company plans to develop a new palm oil mill in West Kalimantan in 2018, bringing the production capacity to 480 tons per hour.

DSNG President Director Adrian Oetomo said that the Company plans to increase its growth in 2018 after posting a positive performance last year. In addition, the Company continues to improve efficiency and productivity.This year, DSNG has plan to build palm oil mill (POM) with a capacity of 30 tons per hour in West Kalimantan. The total production capacity of the Company's POM will reach 480 tons per hour.
"The new POM is going to be developed due to the increase of mature planted area in West Kalimantan," he said in a press release on Friday (9/3).
The total planted area of the Company as of the end of 2017 reaches 90,288 hectares (ha), with 69,369 ha of nucleus estates. The average age of planted area is 8.6 years with mature area of 72,345 ha.
According to Andrianto, after previous years hit byEl-Nino, in 2017 the production performance has returned to improve. The production increased inline with higher global CPO price compared to 2016.
FFB production in 2017 reached 1.55 million tons, increase of 41.6% yoy. Meanwhile, CPO production increased by 34.3% yoy to 403,638 tons, while sales volume also grew by 31.5% yoy to 457,973 tons. "The company's CPO average selling price also increased 8 percent to Rp8.1 million per ton from 2016 of Rp7.5 million per ton," he explained.
Wood Product
In wood product industry, the Company has a wood processing plant in East Java and Central Java that produces wood panels, engineered doors, and engineered flooring.
Throughout 2017, sales of wood panels decreased by 23.4% yoy to 70,679 cubic meters (m3) from 92,235 m3. However, the average selling price increased 8.4% to Rp 5, 27 million per m3 from 2016 worth Rp4, 86 million per m3.
Sales of engineered doors increase of 10.8% yoy to 66,877 units from 59,447 units in previous year. However, there was a decrease in average selling price in 2017 to Rp990,000 per unit from the previous year of Rp1.06 million per unit.
Meanwhile, sales of engineered flooring last year decrease slightly of 0.4% yoy to 1.249 million m2 from 1.254 million m2. The average selling price of this product increased by 4.5% yoy to Rp390.000 per m2 from the previous year of Rp370.000 per m2.