Semen Padang net profits to soar

Semen Padang net profits to soar
Published: 23 June 2006

PT Semen Padang, a subsidiary of publicly listed cement maker PT Semen Gresik Tbk, is targeting 51 per cent growth in net profit this year to Rp 212 billion (about US$22.3 million) from last year’s Rp 139.5 billion (according to Jakarta Post reports). 
 
The company, which accounts for about 30 percent of Semen Gresik’s total cement production, also expects a 24 per cent increase in net sales to Rp 2.7 trillion this year from Rp 2.17 trillion last year. 
 
"We are hoping to produce 5.1Mt and sell 5.24Mt of cement (including stocks) this year to meet our sales target," president director Endang Irzal said Thursday.  He said the company also planned to continue its efficiency and financial restructuring programs to cut production costs.  
 
Irzal said that this year the company would expand its market to outside Sumatra, where it controls about 55 per cent of the market share. He said Java island would be the main target of this expansion.  
 
"We see cement demand in Java is increasing, including in Banten. Therefore, we want to expand our business. One of the ways we will do this is by constructing a new packing plant in Ciwandan, Banten," he said.   He added that the company also was building a new packing plant in Aceh.  
 
Irzal said the company would invest Rp 70 billion for the plant in Ciwandan and Rp 20 billion in Aceh.   "We supply 40,000t to 50,000t of cement per month to Aceh. We also expect demand in Yogyakarta and Central Java to increase after the quake last month," he said.