PT Semen Padang in West Sumatra province said it will this year reduce its exports to 14 per cent of the projected production of 5.3Mt to meet rising demand in Aceh. President Director Endang Irzal said here on Monday that in 2005, the company exported 22 per cent of its output to countries, including Bangladesh.
"This year the company’s management agreed to reduce the cement exports in a bid to concentrate on the domestic market, especially for the rehabilitation and reconstruction of Nanggroe Aceh Darussalam (NAD) province," he said. The domestic market particularly Sumatra has become the main destination of the company’s cement, he said, noting that the rest of the output is for Java and the export market.
Endang further said that nearly 50 per cent of the company’s production is for the Sumatra market. This year, however, Sumatra will absorb more than 50 per cent of Semen Padang’s cement, especially as the result of increased cement consumption in NAD province in the wake of the devastation by the tsunami in December 2004.
He said his company is still building a small cement terminal (Mini Silo) in Malahayati harbour, NAD province, with a capacity of 70,000 tons. The silo is scheduled for completion in July this year, Endang said.