Indonesia approves Lafarge expansion plan
The National Investment Coordinating Board has approved Lafarge SA’s proposal to expand cement production capacity at its North Sumatra subsidiary PT Semen Andalas at an investment cost of US$450m, the board’s chairman Mohamad Lutfi said.
Lutfi said the Semen Andalas project was among largest foreign direct investments (FDIs) approved in June, prompting a large jump in FDI approvals for the second quarter.
Lafarge earlier said it has secured a US$30m bridging loan from Citigroup Inc to reconstruct its Indonesian plant in Aceh which was damaged by the December 2004 tsunami.
Lutfi did not say whether a portion of the French firm’s proposed investment will be used to repair the damaged Semen Andalas plant. Published under Cement News
