Indonesia state-owned producer PT Semen Gresik is expected to start construction of two new cement plants at home and away in the second half of 2012 and first half of 2013, respectively.

Construction on Semen Gresik’s 2.3Mta Rembang plant in Indonesia will start at the end of this year, State-Owned Enterprise Minister Dahlan Iskan said on Tuesday.

“The construction of the Rembang cement factory will start by the end of this year, after the establishment of Holding Cement Indonesia,” he told local press.

The cement plant is to be built in Tegaldowo village, Rembang district with an investment of around IDR3.5trn. Earlier, PT Semen Gresik President Director Dwi Sutjipto said: "The exploration process, which involves examining the content of lime and analysing environmental impact, is almost over."

Myanmar plant construction expected next year

Meanwhile, Gresik has also said it is planning to begin construction of a new plant in Myanmar in the first half of 2013 with an investment cost of around US$300m.

"It will be built next year as we currently focus on optimizing the national domestic demand," Financial Director of Semen Gresik, Ahyanizzaman, told ANTARA on Monday.

A feasibility study is still to be conducted however the company is pursuing every opportunity to establish a foothold in Myanmar as the economy is on a steady growth path.

"We will see such prospects in the future. Due to the high cement demand in Myanmar, next year will be the right time to start (the project)," he added.

For the first six months of this year, Gresik has undertaken capital expenditure of US$180m, about 60 per cent of the company’s budget. In 2012, the company will set capex of about US$500-600m, Ahyanizzaman said.

Published under Cement News