Semen Gresik realises IDR2.5trn in capital expenditure

Semen Gresik realises IDR2.5trn in capital expenditure
Published: 22 July 2010

Captial expenditure at PT Semen Gresik up to June 2010 stood at IDR2.5trn as from the allotted IDR5 trillion.
President director of Semen Gresik Dwi Sutjipto said the fund is allotted to finance new cement mill and overcome debottlenecking challenges.
"We are still finalizing the new platn project including the power plant at PT Semen Tonasa. We will spend some capital expenditure to accomplish some cement mills to increase the production capacity," he said in Jakarta yesterday.
The allotted fund this year is part of the capital expenditure allotted by Semen Gresik up to 2012 totalling US$714m. Most of the fund allocation will be absorbed by Semen Tonasa.
The capital expenditure funding resource comes from internal and Bank Mandiri syndication loan. The company does not simply build cement mill and power plant in Tonasa but also cement mill in Tuban, East Java.
The cement mill construction in Tuban is estimated to spend US$300 million, and so is the construction of Semen Tonasa in Pangkep, South Sulawesi worth US$300 million.
The company spends US$114 million funds for power plant construction in Tonasa cement, Pangkep, South Sulawesi. The power plant has 70 megawatt capacity to cover the plant electricity need.
On the occasion, Dwi Sutjipto said in semester I/2010 the company recorded a slight rise of revenue by 7-9 percent. From the fiture, Semen Gresik is predicted to have net profit rise by 10-15 percent.
In semester I the company made overhaul so the production increased by 4 -5 percent from last year. "The cement price is not that good yet and the competition is getting tougher," he said.
In semester I/2009, the revenue recorded by Semen Gresik stoo at IDr6.76 trillion. Referring to the projection of revenue growh in semester I/2010, cement producer could stand at IDR7.23-7.37 trillion.
Dealing with the net profit, in semester I/2009 Semen Gresik recroed IDR1.51 trillion net profits. Referring to the amount, net profit recorded by the company in semester I/2010 could stand t IDR1.82-1.74 trillion.

The performance is supported by the better consumption of national cement along with the betterment of macro economy condition.