Multistrada investing in rubber supply, capacity expansion
Almost a year ago, PT Multistrada Arah Sarana Tbk announced plans to ensure a reliable supply of raw materials through the acquisition of up to around 30,000 hectares of rubber plantation land. In the end the tyre maker purchased 33,800 hectares in Kalimantan, Indonesia for around Rp3 trillion (£209 million) through its subsidiary PT Multistrada Agro Internasional. During a press conference held in Jakarta on 11 March, company president Pieter Tanuri shared details of this acquisition, stating that this year Multistrada aims to plant up to 1,000 hectares of rubber trees there, a project the firm has budgeted Rp398 billion (£27.7 million) for; 26 per cent of this will come from the proceeds of a recent rights issue. This is expected to be ready for harvest in the next five years.