Indonesia’s Semen Gresik obtains shareholder approval to build two cement plants

Indonesia’s Semen Gresik obtains shareholder approval to build two cement plants
Published: 10 December 2007

Indonesia’s largest cement maker  PT Semen Gresik said Monday that shareholders have approved plans to build two cement plants with a combined capacity of 2.5Mta.  
 
One cement plant will be located on the main island of Java at a total cost of US$355m and the other will be located on Sulawesi island and will cost of US$315m,  Semen Gresik’s chief commissioner Rizal Ramli told reporters.  
 
Construction of both plants will start next year and the Sulawesi plant will start production in 2011, one year ahead of the Java facility, he said.  
 
Thirty percent of construction will be funded by equity with the remaining 70 per cent to be funded by domestic bank loans and a bond issue.  
 
Shareholders also approved plans to build ten coal-fired power plants with a combined capacity of 410MW hours, which are being built in an effort to reduce costs, Ramli said.  
 
Semen Gresik’s annual production capacity currently stands at 16.92Mt.
 
In the 10 months to October  Semen Gresik’s cement output stood at 14Mt, compared to 13.5Mt in the same period last year, Ramli said.