Indonesia’s second-largest cement maker, PT Indocement Tunggal Perkasa, said on Tuesday it plans capital expenditure of US$100m in 2010 and expects to lift production capacity by 20 per cent by 2012.
Indocement plans to lift production capacity from 17.1Mt at the end of 2009 to 20.6Mt by 2012 as new mills come on-stream. The expansion comes on the back of strong domestic demand as leading producers operate at close to full capacity.
"The company earmarked US$100m for capital expenditure this year and it will mainly be used to complete the construction of a cement mill in Cirebon with a capacity of 1.5Mt," said Christian Kartawijaya, finance director.
That would bring production capacity up to 18.6Mt.
Kartawijaya also said the firm was planning to develop two cement mills in the West Java city of Citeureup, with a total capacity of 2Mt.
"Therefore, we will have production capacity of 20.6Mt by 2012," he said.