Indonesian cement producer PT Semen Padang plans to build a new production unit in West Sumatra with an investment of IDR3.8trn (US$425m).
Construction of the new unit, which will have an annual production capacity of 2.5Mt, is expected to start in the last quarter of this year, company’s president Widodo Santoso said.
Santoso said the new unit is important to prevent shortage in domestic supplies, adding shortage is expected in 2012 without additional capacity.
Sumatra already has shortage in cement supplies in 2010, he said.
In 2010, the subsidiary of state owned PT Semen Gresik, produced around 5.67Mt of cement, up 5.79 per cent from the previous year.