MP Evans Group PLC (AIM:MPE) CEO Matthew Coulson recently spoke with Proactive London's Thomas Warner about the significant acquisition of over 8,000 hectares in East Kalimantan, Indonesia. This acquisition represents a substantial expansion for the company, marking a 15% increase in its landholding and signaling a strong end-of-year momentum.
Thomas Warner (TW): Welcome back, Matthew. With the recent acquisition in Indonesia, could you put this expansion into context for us?
Matthew Coulson (MC): Certainly, Thomas. We're excited about acquiring over 8,000 hectares in East Kalimantan, a significant step for MP Evans. This acquisition aligns with our long-term growth strategy and commitment to sustainable development. The youthful nature of this land, primarily planted between 2017 and 2019, positions us well for future crop yield increases.
TW: How do you see this impacting the company's future production?
MC: This acquisition is critical for our future growth. Although the crop from these young hectares is modest currently, we anticipate a substantial increase in the coming years. We expect these new hectares to yield crops at least on par with our current average of over 23 tons per hectare, significantly boosting our overall production.
TW: Is this the most significant development for MP Evans in 2023?
MC: By hectare size, definitely. We've made remarkable strides this year, including opening a new mill and acquiring an additional 2,000 hectares in Sumatra. The East Kalimantan acquisition tops these developments, underscoring our strong year-end momentum and strategic focus on enhancing our milling capacity.
TW: How should shareholders feel about the company's direction and performance?
MC: Shareholders should be very pleased. We're meeting our strategic goals, particularly in increasing the proportion of our crop processed in our mills. The integration of these new hectares, especially their proximity to our existing operations, will make our mills even more efficient, bolstering long-term profitability and sustainability.
TW: Looking ahead, can we expect more land acquisitions from MP Evans?
MC: While our immediate focus is integrating the new hectares, we're always open to further expansion opportunities. Our management team in Indonesia is actively reviewing potential acquisitions, and we're prepared to consider any opportunity that aligns with our strategic objectives.