Semen Indonesia to acquire stake in Myanmar producer

Indonesia's largest cement manufacturing company, Semen Indonesia, is all set to enter Myanmar's cement market after it agreed to purchase a minority stake at a local cement firm, according to president director of the company, Mr Dwi Soetjipto.

"At the moment we can only enter Myanmar's economy with minority control, so we will start with a 30 per cent ownership," Soetjipto announced.

Mr Soetjipto said the acquisition of the minority stake in the local firm is worth US$30m, but did not provide any information about the target company except that it has a estimated capacity to produce 1.5Mta of cement. He explained that the acquisition of the minority stake is just an entry point, and that Semen Indonesia will gradually take more control of the company in the coming years.

The latest development is part of the company's strategy to venture into the regional market in anticipation of the formation of a single economic market under the Asean Economic Community in 2015.