Semen Kupang on the brink of bankruptcy, Indonesia

Semen Kupang on the brink of bankruptcy, Indonesia
Published: 03 August 2006

State-owned cement maker PT Semen Kupang in Kupang is on the brink of bankruptcy, a company official said. The company needs Rp50bn (US$5.5m) in fresh funds or it will likely collapse before the end of this year, its President Abdul Madjid Nampira said.

Nampira said the company with 445 workers has two factories - Kupang I built in 1980 with an annual capacity of 270,000 tons , and Kupang 2 operational in 2003 with an annual capacity of 300,000 tons.

Kupang 1, however, stopped operation in 2000 and Kupang 2 could produces only 15,000 tons a month, he said.