Gresik predicts US$00m capital expenditure in 2009

Gresik predicts US$00m capital expenditure in 2009
Published: 11 December 2008

President Director of Indonesian state-owned cement producer PT Semen Gresik Dwi Soetjipto has predicted the company’s capital expenditure will reach US$300m next year.

"The capital expenditure of Semen Gresik is predicted to reach US$300 million next year. The company at present has relatively good liquidity," Soetjipto said here on Thursday.

He said that 2009 and the on-going global financial crisis were considered to be the right time to make investments. It was expected that investments made in a number of strategic projects would be completed in line with the end of the crisis. The projects were expected to be completed within a period of three years.

Soetjipto said that the largest portion of the financing of the projects would come from the company’s internal sources in 2009.

Foreign loans would possibly be needed in the fourth quarter of the year.

"We also get support form national banks. For this moment, the company relatively has no long-term loans so that our financial structure and liquidity conditions are quite strong," he said.

He said that PT Semen Gresik achieved growth of 11 per cent in 2008 while in 2009 it was predicted to reach three per cent.

Soetjipto said that at present Gresik was developing two new factories with a total investment of US$670 million. In 2009, the company would spend an investment of US$300 million.

The strategic projects that would be built in a three-year period would increase PT Semen Gresik’s production capacity by 25 million tons per annum.