Up to October, the construction of two cement mills owned by PT Semen Gresik Tbk (SMGR) in South Sulawesi and East Java with total investment of US$594 million is claimed to have reach more than 50 percent.
The two new cement mills are constructed by the state cement mill producer have 2.5 million tons capacity which is targeted to finish by 2011-2012 since first construction kickoff in 2008.
"So far it is on the right track. The average is above our projection," said Investor Relation Manager of Semen Gresik Agung Wiharto last Tuesday.
Cement mill Tonasa V project in South Sulawesi has reached 59.11 percent with the overall investment of US$290 million. Meanwhile, the progress of Tuban IV project in East Java has reached 53.34 percent.
The investment value of Tuban IV cement mills is worth US$304 million with full operation projection in 2012. "We hope Tonasa V would have been running by 2011," he said.
Along with the construction of two cement mills, most or 62 percent of the total capital expenditure of Semen Gresik is US$1.26 billion in 2008-2010 is allotted for the use this year and next year.
The total capital expenditure in 2010 is valued at US$402 million and US$383 million next year so as totaling US$785 million.