Egypt’s Orascom Construction Industries SAE, or OCI, plans to invest up to $300m in a cement production facility in Indonesia, a government official said.
OCI’s planned investment will be in the town of Purowadadi, Muhammad Lutfi, chairman of Indonesia’s official Investment Coordinating Board, told reporters, without elaborating.
Officials from OCI were not immediately reachable for comment.
OCI is a cement producer and construction contractor active in emerging markets including Egypt and Algeria.
The company issued a press statement through the Cairo and Alexandria Stock Exchange in October 2005 denying earlier media reports that it planned to pour money into an Indonesian venture.
But an uptick in Indonesia’s economic growth and an ambitious $150 billion government infrastructure investment plan have increased the attractiveness of investment in Southeast Asia’s largest economy.
The Indonesian government has forecast 5.8% economic growth in 2006 compared with 5.6% expansion last year.
If it goes ahead, the company has indicated that it will start construction of the plant, which will have an annual production capacity of 1Mt, in early 2007, he added.
"Usually it takes 28 months to construct a cement plant," Lutfi said when asked when the company plans to start production.
Source: Dow Jones Asian Equities Report