The construction of new cement plant of PT Holcim Indonesia Tbk in Tuban cost have increased by 25 per cent to 43 per cent as from US$420m or IDR3.88trn into US$525m to US$600m.
The investment sharp increase here was triggered by the skyrocketing steel and fuel prices.
Relationship Management Director Holcim Indonesia Rusli Setiawan said the company will seek bank loan to cover the needs for the cost. Holcim has been selecting some banks in its bid to attain the most benefiting loan scheme.
"The construction of the new plant is expected to be done by end of this year following the completion of finance talk. The project is predicted to take three years or be ended by 2011," he said yesterday.
The new plant is projected to boost up the Holcim production capacity as from 7.9Mta into 10Mta by 2011. Holcim has so far had three plants located in Cilacap, Central Java and two units in Narogong, Bogor, West Java.
The total cement production of Holcim Indonesia in January to June period is estimated to stand at 2.53Mt or rose by 22 per cent as from the same period last year.
The company has yet to revise the revenue or net profit targets due to the growing cement demand. To keep the growth this year, Holcim adjust the cement price.