Indonesian state cement maker PT Semen Padang in West Sumatra is seeking US$174m in loans to build a new plant with an annual production capacity of 3.5Mt.
"We will seek loans among others from Bank Mandiri and Bank BRI Semen Padang president director Widodo Santoso said at the State Enterprises Ministry on Wednesday.
He said the company would also set aside its internal funds to finance the expansion project which would cost an estimated US$350m.
"The internal and external funds will amount to US$175 million each," he said.
He expressed hope that the construction of the new plant could be started in 2012 and the plant could start production in 2014.
PT Semen Padang now has four plants with a combined production capacity of 6Mta.
In the first half of 2010 the company produced 3Mt, up from the same period last year when the figure was 2.8Mt.
The company has set the target of its production for 2010 at 6.63Mt, well above its last year`s production of 5.6Mt.
PT Semen Padang plans to sell 75 percent of its production this year in West Sumatra, 20 percent in Java, while the rest will be exported to the Middle East, Bangladesh and Africa.
"The target of our cement exports this year is only 500,000t compared to 800,000t last year. The decline is caused by rising domestic demand," he said.