Toyota Tsusho, MFM and FKS to establish flour mill in Indonesia

Toyota Tsusho, Malayan Flour Mills and Indonesia’s FKS Capital have agreed to invest 5.2bn yen ($66m) to set up a flour mill company in Jakarta, Indonesia.

FKS Group will hold 40% stake in the company, MFM Group 30% and Toyota Tsusho Group 30%.

Spanning over an area of 11ha, the mill will have a flour production capacity of 1,500t a day.

Toyota Tsusho said that it decided to inject capital into the project as a means to enter the flour mill market of Indonesia.

The consumption of wheat flour is growing steadily in Indonesia and the country is expected to become the largest wheat-importing Asian nation in the future, the company added.

Construction is scheduled to start in 2012, with commercial production planned in 2013.