Indocement considers two new factories, Indonesia

Indocement considers two new factories, Indonesia
Published: 03 August 2011

PT Indocement, part of the HeidelbergCement Group, is conducting a feasibility study to build two cement factories with a production capacity of 2.5Mta.



"Of the two new cement factories, one will be built in Central Java and the other outside Java," the company`s spokesman Sahat Panggabean said here on Monday.



Panggabean said the company was optimistic that domestic demand for cement would continue to increase and therefore the feasibility study was being conducted to build the two new cement factories.



He said the company would make use of the strong and healthy balance sheet at present to anticipate capital expenditures.

Indocement currently operates three cement factories. Its plant in Citeureup has nine production lines with a capacity of 11.9Mt, Palimanan two with a capacity of 4.1Mt, and Tarjun Kota Baru has one production unit with a capacity of 32.6Mt.



The company`s Finance Director, Christian Kartawijaya, said in March this year Indocement planned to increase investment to raise its production capacity from 2Mta to
 20.6Mt. At the time he said the company would add US$140m to increase milling capacity at its Citereup works, which is expected to be completed in 2012-13.