Indonesia: Angel Yeast Invests USD43m in New Subsidiary

Chinese company Angel Yeast is partnering with Indonesian agricultural company PT.Tunas Baru Lampung Tbk to set up a subsidiary and acquire land to develop yeast production projects, in a move to further optimize Angel Yeast’s global yeast production operations and carry forward its international strategy, boosting its competitive advantages in the Asia-Pacific markets.

The subsidiary has a registered capital of 381 million yuan (USD54.29m), of which Angel Yeast will contribute about 305 million yuan (USD43.46m) and hold 80 percent of the shares. The registration and land transaction procedures are estimated to be completed before February 2025.

The land to be acquired for the project is held by Sungai Budi Group, and the industrial land has a total area of 15.31 hectares, with the total amount of the land acquisition expected to be worth approximately USD5m.

“The subsidiary will not only solidify our presence in Indonesia’s yeast market to address increasing demand, but it will also enhance our competitive edge and long-term profitability in line with Angel Yeast’s strategic goals. Additionally, we plan to aggressively penetrate markets in India, Oceania, and North America to accelerate our market development and expand our market share,” said Chen Hongquan, chairman and general manager of Angel Yeast Indonesia Company.