Gresik to invest in new plants, Indonesia

Gresik to invest in new plants, Indonesia
28 May 2012

Indonesian cement producer, PT Semen Gresik, plans to build new cement plants in Sumatra and Java this year with an investment cost of IDR7trn (US$756m), according to reports in the Jakarta Globe.

Dwi Soetjipto, president director of state-owned Gresik, said: “We will add the plants to directly support the production process, or the core business of the company.”

Semen Gresik will seek a bank loan to finance the construction of the plants, he said, adding that another option was a bond sale. Dwi said the company would seek shareholder approval on 26 June for the construction of the plants.

Semen Gresik’s finance director, Ahuanizzaman, said this month that the company was also planning to build a cement plant in Myanmar, where the local industry can only meet half of the domestic demand there. The company estimated the cost of the 600,000tpa plant to be around IDRtrn. Construction is expected to begin this year and the company is also looking for a local partner in Myanmar.

Published under Cement News