REPUBLIKA.CO.ID, MEDAN -- PT Perkebunan Nusantara (PTPN) III said it hopes to operate its new US$40 million crude palm oil (CPO) factory in Sei Mangkei in North Sumatra in 2016.

The factory will produce olein, stearin, and fatty acid, Alexander Maha, the planning and development director of the state plantation company said.

The factory being built in the Sei Mangkey special industrial zone (KEK) will be able to use almost 90 percent of the company's annual production of 600,000 tons of CPO.

"The investment is more promising as the factory already has a captive market, Unilever, which is already in operation in that location," Alexander said.

Around 100,000 tons of the factory's olein production of around 450,000 tons per year would be bought by Unilever.

Its production of stearin and fatty acid would also be supplied to Unilever.

"After the CPO processing factory has been in operation it is not impossible that PTPN III would invest in other related industries," Alexander said.

Investment could be made by the company alone or in cooperation with other state companies or private investors, he added. .

"As the operator of the special industrial zone of Sei Mangkei, PTPN III is responsible for promoting investment in that location," he said.

Secretary of the National Council of KEK, Enoh Suharto Pranoto, said Sei Mangkle KEK would grow faster as it would be integrated with the aluminum industrial estate and the port of Kuala Tanjung.

"Growing number of investors have indicated interest in investing in Sei Mangkei Semakin," Enoh said.

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