PT Semen Gresik says it will start constructing a cement plant on the island of Java next year at a cost of 2.802 trln rupiah. The new plant, due to be completed in 2011, will have a capacity of 2.5Mt of cement per year, raising the company’s total capacity to 15.82Mt per year, XFN-Asia reported quoting a written statement. Internal cash will cover 35 per cent of the cost and a loan from a bank or other financial institution will cover the rest.
In the new plant’s first year, the company’s sales volume is expected to increase by 1.8Mt, assuming that the plant will operate at 70 per cent of capacity. "The operation of the new plant will automatically increase the company’s revenues and subsequently the company’s profit margin," the statement says.