Semen Gresik seeks higher revenue

Semen Gresik seeks higher revenue
27 March 2007

The Ministry of State Owned Enterprises (MSOE) has targeted that the revenue of Semen Gresik should increase by 40% this year from IDR8 trillion in 2006.  
"The MSOE has targeted that the revenue should increase by 40%," said the President Director of Semen Gresik Dwi Soetjipto last week.  
Previously the company has targeted that the net profit of 2007 should increase by 30%.  
In 2006, Semen Gresik posted the total revenue of IDR8 trillion, compared with IDR7.8 trillion in 2005. The increase was not substantial as the demand on cement has just increased by 1.6%. 
Soetjipto said the company has planned to expand the business by developing new facility. In this regard, the company will get some loan from Bank Mandiri. "We should develop new cement plant as in 2011 the supply of cement will not be able to meet the demand."  
The company has targeted to produce 17.2Mt of cement this year, an increase of only 0.4Mt from 16.8Mt in 2006.  
Semen Gresik has planned to develop new facility starting 2008 with the total investment of US$303 million. One third of the capital will be from internal cash reserve and the other ones will be from outside the company. The facility is developed to meet the demand starting 2011.  
A Deputy of MSOE on Strategic Industry, Mining, Energy and Telecommunication, Roes B Aryawijaya, said it has not got the proposal from the company on the new facility. 
"We don’t see the proposal yet. We will take our position after seeing the proposal."  
Semen Gresik has been operating four facilities with the total capacity of 8.2Mta.  Semen Padang, one of the units, has four facilities with the combined capacity of 5.24Mta, and  Semen Tonasa has three facilities with the combined capacity of 3.48Mta. 
To support the performance of the company,  Semen Gresik has assigned PT JP Morgan Securities Indonesia as the financial consultant. The company also has assigned  A.T. Kearney as the restructuring consultant.

Published under Cement News