Syngenta Indonesia to Build Seeds Processing Plant in Java

Syngenta IndonesiaTuesday  broke ground on its new corn seeds processing plant in Pasuruan, East Java. This new facility, which will be built with an initial investment of US$26 million, will have a capacity to process 5,700 metric tons of seeds.

The seeds processing plant will be operational by the second half of 2011. More than 15,000 farmers, who will be required to supply harvested corn for processing, will also directly benefit by receiving a contract price for their produce.

“It is estimated that these farmers’ net incomes will increase by 12-16%, as compared to what they would receive for normal commercial planting of corn and rice,” said Mr Adi Gunawan, Country Head of Syngenta’s Seeds business in Indonesia. “Syngenta’s new seeds processing plant will help to improve the welfare of farmers and the surrounding community.”

This facility adds to the modernization of Indonesia’s agricultural infrastructure, which is crucial to ensuring the capacity to grow and distribute enough crops to achieve food security for the country.

“It is only through genuine collaborations between the public and private sectors that we can find solutions to challenges like food security,” said Chris Allen, the Head of ASEAN for Syngenta’s Seeds business. “This investment illustrates the shared commitment of Syngenta and the Indonesian government to advancing new technology which will in turn enhance agriculture.”

When complete, the seeds processing facility will have drying, conditioning, packing and warehousing capabilities. It will also have the option to expand its processing capacity to up to 23,000 metric tons.

Syngenta Indonesia has been producing and distributing corn hybrid seeds since 2000. The company now has 8 varieties marketed under the NK brand including NK22, NK33, NK99, NK6326, NK6325. Syngenta also produces vegetable hybrid seeds like Sweet Corn (SG75, Silo12), Chili (SG Hot, Big Hot), Tomato (Intrend, Saviro, and Kalus) for the Indonesian market.