Indonesian cement producer PT Semen Gresik plans to build its third cement plant in Java next year, a senior company official said Thursday.
"We need up to around US$570m to finance the development of the plant," Gresik’s Chief Financial Officer Cholil Hasan told reporters.
As much as 40% of the funds will be taken from the company’s internal cash, while the remainder will be from "the issuance of either rupiah or dollar bonds or syndicated bank loans," Hasan added.
Hasan expects the company to produce around 17Mt of cement this year, up from around 16Mt last year.
He said that the new cement plant, which should start operations in 2011, will have an annual capacity of 4.4Mt of cement.