Indocement Tunggal Prakarsa, Indonesia’s biggest cement maker by value, plans to build a plant in Pati, Central Java, at a cost of around US$300m, reports said on Wednesday.
“Investment will be done in stages,’’ Sahat Panggabean, Indocement’s corporate secretary. “The company will set aside around US$100m for its initial investment,’’ Sahat said. The new plant is estimated to produce 2.5Mta of cement. Construction is expected to start next year.
Sahat said that Indocement would finance the construction of the plant with its own cash, but if for some reason that would prove impossible, the company might resort to seeking external funding. Indocement had IDR6.2trn (US$700m) in cash equivalents as of June 30.