Indonesia production capacity to increase 2.5Mt

Indonesia production capacity to increase 2.5Mt
Published: 27 May 2009

Indonesia’s cement production capacity will increase by 2.5M5 to 47.5Mt this year.

A new factory of PT Semen Andalas in Aceh will come on stream with an annual production capacity of 1.5Mt, the association of cement producer (ASI) said.

The old factory of the company, which is owned by Lafarge was destroyed by Tsunami in December, 2004.

The replacement factory is expected to come on line toward the end of this year, ASI chairman Urip Timuryono said.

Meanwhile, PT Semen Padang and PT Semen Tonasa, both subsidiaries of state cement maker PT Semen Gresik will contribute around 1Mt to the additional capacity this year, Urip said.

The capacity expansion of the two subsidiaries will increase the capacity of Semen Gresik, the country’s largest producer to 18Mta, the newspaper Investor Daily said.