Indonesia’s third largest cement maker PT Holcim Indonesia is seeking a loan from International Finance Corp (IFC) to finance construction of a new cement factory in Tuban, East Java.
The project cost is estimated to increase to around US$600m from previous estimate of US$240m as a result of an increase in the steel prices.
Holcim Indonesian President Tim Mckay said the swelling cost requires additional capital expenditure this year.
The new factory is expected to expand the production capacity of Holcim from 7.9Mt at present to 10.5Mt in 2011, the newspaper Bisnis Indonesia said.
Holcim Indonesia, which is 77.33 per cent owned by Swiss-based Holcim Ltd, the world’s second largest cement producer, now has three cement factories.