INDONESIA – Global yeast manufacturing leader Angel Yeast has partnered with Indonesian agricultural company PT.Tunas Baru Lampung Tbk (TBLA) to launch a new production facility in Lampung Province, Indonesia.
This move represents a strategic expansion aimed at strengthening Angel Yeast’s presence across Asia and enhancing its global competitive edge.
The company’s substantial investment of US$43.46 million will fund the establishment of a new subsidiary and the acquisition of a 15.31-hectare industrial land area for production.
Angel Yeast’s financial commitment will cover 80% of the newly registered subsidiary’s capital, amounting to 305 million yuan (US$43.46 million).
Meanwhile, TBLA will invest the remaining 20%, totaling 76 million yuan (US$10.83 million).
The partners aim to complete registration and land acquisition processes by February 2025, marking a significant step forward for Angel Yeast’s production infrastructure and market footprint in Indonesia.
With its position as the world’s fourth most populous country, Indonesia presents a lucrative opportunity for yeast producers, boasting both high demand and abundant raw material resources.
Additionally, its strategic location in the Straits of Malacca offers logistical advantages for trade across Asia and beyond.
The industrial land for this facility is owned by the Sungai Budi Group, with the acquisition estimated at Rp76.6 billion (US$5.015 million).
Chen Hongquan, Chairman and General Manager of Angel Yeast Indonesia Company, highlighted the importance of this investment in Indonesia’s growing market, which he expects will foster Angel Yeast’s development in neighbouring regions like India, Oceania, and North America.
“The subsidiary will not only solidify our presence in Indonesia’s yeast market to address increasing demand but also enhance our competitive edge and long-term profitability in line with Angel Yeast’s strategic goals,” Hongquan explained.
Angel Yeast’s expansion in Indonesia follows a successful track record of international growth, including operations established in Egypt and other locations.
In the first half of 2024, the company reported a 6.86% year-on-year increase in revenue, reaching 7.175 billion yuan (US$1.02 billion), alongside a notable rise in fermentation production to 204,000 tons.
The robust financial performance has been supported by Angel Yeast’s intensified focus on global markets and a steady increase in overseas revenue.
As the company looks forward, it aims to amplify its role in biotechnology to promote healthier lifestyles.
“Moving forward, Angel Yeast is committed to advancing biotechnology to foster healthier lifestyles. We will confidently enhance our technological innovation and research and development capabilities as we expand into global markets,” Hongquan added.
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