Novermber 25th 2020
Cargill invests US $100 million in facility in Pandaan, Indonesia.
Investment in new corn wet mill and starch dryer increases production of starches and sweeteners to meet growing demand in food, industrial and feed markets across region.
Cargill is investing US $100 million in its sweetener plant, PT. Sorini Agro Asia Corporindo, in Pandaan to build a corn wet mill and add a starch dryer to better serve the growing customer demand for corn-based starches, sweeteners and animal feed ingredients. The facility is expected to be online by early 2022.
“The new corn wet mill allows us to purchase corn and convert it into corn-based starch and sweeteners. With an enhanced product portfolio and substantially more production capacity, we are better positioned to support our customers’ growth plans,” shared Franck Monmont, managing director of Cargill Starches, Sweeteners & Texturizers (CSST) Asia. “This investment also demonstrates our commitment to grow in this region and provides significant support to the local economy with a new revenue stream for regional farmers.”
The Pandaan facility originally opened in 1983 and currently imports dry starch (tapioca and corn) and converts it into sweeteners, such as glucose, sorbitol, and maltodextrin. With the expanded capabilities, Cargill will be able to produce corn-based equivalents of its existing sweeteners and add corn starch, corn gluten meal, corn gluten feed and corn germ to its portfolio. In doing so, Cargill is better prepared to collaborate with customers to meet their formulation needs, from confectionary, dairy, and convenience foods to personal care products and paper products to animal feed.
“Our investment to enhance and expand our sweetener plant in Pandaan comes at a time when the Indonesian government has identified a critical need for more investments1 into the country’s agricultural sector,” said Sunit Dhoka, CSST managing director for Southeast Asia and country representative for Indonesia. “According to data from the Investment Coordination Board (BKPM), only 3% of foreign direct investments into Indonesia in 2019 were in agriculture – a sector which accounts for 29%2 of the country’s total employment. We are optimistic that our investment will have a positive impact, with our operations creating sustained demand to support upstream agricultural activities in Indonesia and especially in East Java.”
Today, Cargill employs 20,000 people at 60 locations across Indonesia. In addition to its total direct investment of $800 million in Indonesia in the past 5 years, which includes this project, Cargill has contributed more than $5 million to nonprofit organizations in the country to support health, education and community economic empowerment.