Development of Indarung VI cement plant considered urgent

Development of Indarung VI cement plant considered urgent
Published: 19 January 2009

PT Semen Padang, a state-owned enterprise under Semen Gresik Group (SGG), targets to start the construction of the new cement plant (Indarung VI) with a capacity of 2.5Mt in the fourth quarter of 2009. The project is estimated to require IDR3.8 trillion worth of investment.

The project is important since the existing cement plants have been operating in full capacity, In addition, the II and III Indarung plants are getting old, making their productivities decline.

The completion of the Indarung VI plant is expected to boost Semen Padang’s total production capacity to 8.3 million tons by 2012. Last year, the company was able to boost its installed capacity from 5.24 million tons to 5.8 million tons.

Commissioner of PT Semen Padang Imam Hidayat explained the feasibility study recommended the realization of the Indarung VI plant.

The recommendation would later be passed up to the Shareholders’ General Meeting for approval. "The fate of the project will depend on the shareholders’ approval in the Shareholders’ General Meeting at the end of the month," he told Bisnis on the sidelines of the work visit of the Minister of Industry in Semen Padang on Thursday.

Data by Bisnis show the construction of the Indarung VI plant is scheduled to start in the fourth quarter of 2009 and the plant will operate commercially in 2012. The plant is estimated to require IDR3.8 trillion to realize.