Semen Indonesia to begin Myanmar construction next year

Semen Indonesia to begin Myanmar construction next year

PT Semen Indonesia is set to start construction of a new plant in Myanmar next year as part of the country's regional expansion drive.

Citing the company’s president director Dwi Soetjipto, the Jakarta Post reported that operations at the 1Mta would begin in 2017.

The plant would mainly serve the growing market of Myanmar which is modernising its economy after decades of military rule. Domestic cement consumption, which in 2012 is expected to have increased by 16.7 per cent to 7Mt, is forecast to advance by double-digits over the next few years. With the change of lifestyle in modern times and building of infrastructure, cement demand rises each year at a rate of about 1Mta.  Gresik’s new plant will also serve the neighbouring markets of Bangladesh and Thailand.

Last year Gresik acquired the Thang Long Cement Joint Stock Company of Vietnam from the Hanoi General Export-Import Joint Stock Company (Geleximco) and now aims to expand its capacity to 6.5Mta from 2.3Mta by establishing two new plants.

It is also continuing to expand its domestic capacity with new projects in Rembang, Central Java and Padang, West Sumatra, each with capacities of 2.5Mta.