State-owned cement producer PT Semen Gresik said that it would build two new plants next year to boost the company’s annual capacity.
"One of the plants will be built in Sumatra, perhaps in West Sumatra or Aceh. I cannot disclose the location of the other plant because we are still working on it," Semen Gresik president director Dwi Soetjipto told The Jakarta Post over the telephone.
Dwi said that the construction of the two new plants would be started in the 2H12 and was scheduled to finish in 2015. According to Dwi, the two new plants will have a total capacity of up to 3Mta.
Semen Gresik will spend about IDR7trn (US$768.39m) for the two new plants. "We will fund about 30 to 40% of the expenses with our internal cash and about 60% from external sources, which can be bank loans or bonds," he said.
Currently, Semen Gresik is working on the construction of its cement plants in Tuban in East Java and in Pangkep in South Sulawesi. The project in Tuban is scheduled to finish this December and the plant in Pangkep in April next year.
Each of the plants in Tuban and Pangkep will have production capacities of 2.5Mta.
According to Dwi, Semen Gresik currently has a total of 10 cement factories in Padang (West Sumatra), Tuban, Gresik (East Java) and Tonasa (South Sulawesi) with a total production capacity of about 20Mta.
"We will reach production of 19.5Mta by the end of the year," Dwi said.