Semen Gresik capital expenditure worth US$784m

Semen Gresik capital expenditure worth US$784m
Published: 08 May 2009

PT Semen Gresik Tbk allocated US$784m capital expenditure or IDR8.07 trillion as from 2008 up to 2012 to finance strategic projects and ne power plant and factory.

To finance those projects, the company still negotiates the bank syndication terms worth IDR6 trillion led by Bank Mandiri.

The presentation material of Semen Gresik addressed to the Investor Day, the company will allocate US$355m to help construct a factory with 2.5Mt cement capacity in Java which is commenced in 2008 to 2012 worth US$142/t.

The plant construction in Sulawesi need US$315m investment from 2008 to 2011 with 2.5Mt to capacity with US$126/t investment.

The power plant construction in Sulawesi will require some US$114m investment from 2008-2011.It will have 2x35MW capacity with US$1.63 per MW investment.

The action here is part of the corporate schemes to boost up the cement capacity from debottlenecking.