Indonesia’s largest cement producer PT Semen Gresik said it is preparing the construction of two new cement factories next year to cost around US$600m.
The factories will be built in Central Java and Sumatra each with a production capacity of 2.5Mta, said Dwi Soetjipto, the president of the state company.
Meanwhile, the company have two new factories to come on line next year with a total capacity of 5Mta.
Tuban IV, the construction of which began in 2009 is to start operation in January and Tonasa IV in South Sulawesi will come on stream in May 2012.
The new factories including the two yet to be build will increase the capacity of Semen Gresik by 10Mt in 2015.
The company also plans to build a packing plant in Sorong, Papua starting in April next year with a bagging capacity of 10,000tpa.
This year, the country’s production capacity is around 54.4Mta with capacity utilisation of 88 per cent.