Semen Gresik readies for US$300m expenditure

Semen Gresik readies for US$300m expenditure
Published: 15 December 2010

PT Semen Gresik Tbk allocated US$300m capital expenditure by 2011 mostly for cement mill construction.

Finance Director of Semen Gresik Kholil Hasan said some US$240m will be sued for new cement mill construction and the remaining US$60m will be used for the company routine needs.

"The capital expenditure next year is to construct new cement mill worth US$240m and routine activities US$60m. The fund is from internal cash and bank loan," he said this week.

In the corporate strategic plan, the total capital expenditure of cement producer could reach US$383m or quite less than this year of US$402m.

Kholil also said up to end of the year, the company projected to reach IDR14trn revenue and 18.3Mt sales volume almost the same as that of last year.

He said the stagnant sales volume this year is due to the earthquake in West Sumatra and Mount Merapi eruption.