PT Semen Gresik (SG) set the budget of capital expenditure as much as IDR700 billion next year, some of which was to develop new facility. The management of the company planned to conclude the feasibility study on the development of the new facility early next year, so that the shareholders would be able to approve the plan on their meeting on February next year.
The President Director of Semen Gresik, Dwi Soetjipto, said that the feasibility study on the new facility development was run by an international company, Truscel Capital, in cooperation with Surabaya Institute of Technology (ITS). The study has run since last October. "In this regard, we will be able to start developing the new facility on the second half of next year. The target for the first half of the year is to buy some lands," he said on the sideline of visit to Semen Padang on Wednesday.
According to the initial prediction, the new facility would need IDR3.5 trillion investments. As much as 30 per cent of the investment would use the internal cash reserve of the company, while the rest 70 per cent would come from loan. The company set the target to conclude the development in 2009. Dwi also predicted that the national demand on cement would increase by 7.5-8 per cent next year.