PT Semen Padang, a unit of Indonesia’s largest cement producer, PT Semen Gresik, is considering building a new cement plant with a production capacity of 2.5Mta, Semen Padang finance director Epriliyono Budi said.
"We’re considering building a new cement plant to anticipate rising cement demand in the Sumatra island area," Budi told a hearing at the lower house of parliament late Tuesday.
The company is conducting a feasibility study, Budi said.
A preliminary study indicates the cost of the plant could be US$250m, he said. He did not say when the plant might be constructed.
Semen Padang expects to sell 6.4Mt of cement in Sumatra this year, of which 5.4Mt will be produced by Semen Padang and the rest by Semen Gresik, Budi said.