Indonesia’s largest cement producer PT Semen Gresik Tbk plans capital expenditure of US$400m in 2010 to help cover the cost of building new factories, President Director Dwi Soetjipto said on Thursday.
Semen Gresik has planned capex of US$1.2bn for 2009-2014 to cover the construction of new factories in Java and Sulawesi, a power plant in Sulawesi, and to improve efficiency. The 2010 spending is included in that amount.
Soetjipto told reporters the firm would fund the 2010 capex from its internal cash.
Semen Gresik, which has a stock market value of US$4.5bn, expected production capacity to reach 18.5Mt this year and aims to increase it to 19Mt next year.