China National Building Material Co Ltd (CNBM) plans to invest US$350m to build a cement factory in the next two years in Indonesia’s main Java island.
"We are committed to build a cement factory in Grobogan to cooperate with local firms, with the investment being US$350m" the local Bisnis Indonesia newspaper quoted Ma Mingliang, the head of the firm’s cement division, as saying. The factory will have a cement production capacity of 16,000tpd.
Foreign direct investment from Asian firms has picked up this year in Southeast Asia’s biggest economy, thanks to political stability and strong economic growth, though there have been few Chinese investments so far.
Chinese premier Wen Jiabao visited the country in April in an effort to improve trade and investment ties.