State cement producer PT Semen Gresik is planning to invest IDR3.5trn (US$3.5m) to build a new cement plant in Indarung, West Sumatra, to boost its production capacity.
“Semen Gresik subsidiary PT Semen Padang will manage the new plant,” Semen Gresik president director Dwi Soetjipto said at a memorandum of understanding signing ceremony between state electricity company PT Perusahaan Listrik Negara (PLN) and the Semen Gresik group in Jakarta, on Friday.
Dwi said the new plant’s construction would be financed using internal funds and loans.
“The new plant will be operational by the end of 2011 or at the beginning of 2012,” Dwi said, adding Semen Gresik would start building it in 2010.
According to Dwi, the new plant will be designed to produce 2.5Mta of cement and will contribute to 10 per cent of Semen Gresik Group’s total production capacity.
Semen Gresik, located in East Java, has two subsidiaries – PT Semen Padang in West Sumatra and PT Semen Tonasa in South Sulawesi.
“The new plant’s capacity will almost match the production capacity of our two factories in Gresik and Tuban,” Dwi said.
Source: The Jakarta Post