BANGKOK/LONDON : Thailand’s Mitr Phol said it had acquired a 75 per cent stake in Indonesian sugar mill Kebun Tebu Mas (KTM) as Asia’s largest sugar and bioenergy producer expands its footprint on the continent.
Mitr Phol told Reuters it “envisages a pivotal role in advancing Indonesia’s self-sufficiency in sugar production” with its purchase of KTM, one of the country’s largest privately-owned sugar mill and refinery.
It did not disclose the value of the deal.
Indonesia, one of the world’s largest sugar importers with a population of roughly 270 million people, is aiming to be self sufficient in sugar by 2027 and is eyeing development of renewable sugar-based ethanol afterwards.
The Southeast Asian country produced 2.4 million tonnes in 2022, and consumes 3.4 million tonnes annually.
KTM, located in East Java, produces about 400,000 tonnes of refined sugar a year, according to commodities trader and supply chain services company Czarnikow, which advised on the deal.
“Indonesia is developing at a rapid pace and offers enormous potential for global consolidators in the food, energy and logistics space,” said Stefano La Valle, Czarnikow’s head of corporate finance Asia.
KTM was not immediately available to comment.
Source: CNA
