Gresik needs US$1.2bn for expansion

Gresik needs US$1.2bn for expansion
Published: 21 September 2007

The country’s largest cement maker  PT Semen Gresik (SMGR) and its financial advisor  JP Morgan are considering options to raise US$1.2 billion in fund to finance business expansion until 2011.  
SMGR President Dwi Soetjipto said the state company need the fund to build strategic projects including new cement factories and power plants to increase its production capacity.  
Dwi said SMGR hopes to increase its total production capacity, including subsidiaries PT  Semen Padang and PT  Semen Tonasa, by 40 per cent from 16Mt in 2006 to 22.9Mt in 2013.  
The company already announced its planned to issue bonds but was also considering other ways of raising funds, he said  
The company has not issued its financial report for the first half of this year, but Dwi said he was optimistic the financial performance of the company was better as sales increased 7 per cent.