Project Revitalization

In 2007, we completed a major acquisition of what was formerly the largest shrimp aquaculture group of companies in the country – the Dipasena Group.  Its assets comprised of more than 10,600 commercial ponds (more than almost three times the number of ponds in our shrimp farms in different locations combined), hatcheries, shrimp feedmill, processing plants, vessels, and extensive land bank.

This acquisition is a transformative one for CP Prima, as we reaped significant cost benefits from the acquisition as opposed to growing the scale of our aquaculture facilities to a similar size organically.  Had we chosen the organic route, we would have needed eight years to complete the construction of the ponds and the supporting infrastructure, compared to two years required to revitalize the Dipasena assets.

Progress of Revitalization
As of year-end 2007, phase one of the revitalization program, which focused on the ponds at Wachyuni Mandira, had been successfully completed.  This brought our combined shrimp ponds of same size as those of CP Prima’s to approximately 8,565 ponds, an increase of 122% from the 3,856 ponds of CP Prima’s prior to the acquisition.

Major reconstruction and refurbishment works also went to revitalize the hatcheries, shrimp feedmill and processing plant to produce our premium-quality frozen shrimps that are slated for exports. By year-end 2007, our newly acquired and revitalized facilities had annual production capacities of 9,600 million fries per year, feed-mill of 3,600 MT per year and processing plant of 43,200 MT per year.