The capital will be used to build a new corn wet mill and starch dryer to increase the production of starches and sweeteners, enabling Cargill to meet growing demand in food, industrial and feed markets in the region.
The Pandaan facility – part of Cargill’s subsidiary Sorini Agro Asia Corporindo – opened in 1983 and currently imports dry starch (tapioca and corn) which it converts into sweeteners, such as glucose, sorbitol and maltodextrin.
With its new corn wet mill, Cargill says it will be able to produce a greater range of corn-based products including sweeteners, corn gluten meal and corn germ.
As a result of these expanded capabilities, Cargill claims it will be better prepared to meet formulation needs for confectionery, dairy and convenience foods.
“With an enhanced product portfolio and substantially more production capacity, we are better positioned to support our customers’ growth plans,” said Franck Monmont, managing director of Cargill Starches, Sweeteners & Texturizers (CSST) in Asia.
He added: “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.”
Sunit Dhoka, CSST managing director for Southeast Asia and country representative for Indonesia, said: “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 investments into the country’s agricultural sector.
“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.”
In the past five years, Cargill has invested a total of $800 million in Indonesia that includes this project. To date, the company employs 20,000 people at 60 locations across the country.
The facility expansion is expected to be in full operation by early 2022.