Angel Yeast, a global leader in the yeast industry, has announced a strategic partnership with Indonesian plantation company PT Tunas Baru Lampung (TBLA) to establish a subsidiary in Lampung province.
This partnership includes acquiring land for plantation projects aimed at optimizing Angel Yeast’s global yeast production and enhancing its competitiveness in the Asia-Pacific market.
The newly formed subsidiary has an initial capital of RMB381 million (US$54.29 million). Angel Yeast will contribute RMB305 million (US$43.46 million), controlling 80 percent of the company’s shares, while TBLA will invest RMB76 million (US$10.83 million), controlling 20 percent of the shares. The land acquisition and permit procedures are expected to be completed by February 2025.
The land to be acquired for the project, spanning 15.31 hectares, belongs to the Sungai Budi Group. The estimated acquisition value of the land is around Rp76.6 billion (US$5.015 million).
With Indonesia being the fourth most populous country in the world, the demand for yeast products is high. Additionally, Indonesia offers abundant raw materials for yeast production and a strategic location in the Malacca Strait.
Chen Hongquan, Chairman & General Manager of Angel Yeast Indonesia Company, noted that since 2010, Angel Yeast has established production facilities in Egypt and other countries.
The new subsidiary in Indonesia will leverage local resources, the country’s strategic location, and competitive tariffs to accelerate business development across neighboring countries.
“This subsidiary will not only strengthen our reach in Indonesia’s growing yeast market but also enhance long-term profitability and competitiveness, aligning with Angel Yeast’s strategic goals. We also plan to explore markets in India, Oceania, and North America to further accelerate business expansion and increase market share,” Chen said on Sunday, October 20, 2024.
In the first half of 2024, Angel Yeast reported an operational revenue of RMB7.175 billion (US$1.02 billion), marking a year-on-year growth of 6.86 percent. Fermentation production reached 204,000 tons, an 11.5 percent year-on-year increase.
“Angel Yeast’s revenue from overseas markets has also seen rapid growth in the first half of 2024. This growth is driven by positive industry prospects and the company’s expanding international presence. Looking ahead, Angel Yeast remains committed to advancing biotechnology for healthier lifestyles while enhancing technological innovation and research to support its global expansion,” Chen concluded.
