Semen Gresik sets US$400m for 2013 capex

Semen Gresik sets US$400m for 2013 capex
02 January 2013

Indonesia’s largest cement producer PT Semen Gresik has set US$400m in capital expenditure for its corporate business activities, according to its president Dwi Soetjipto.

"The expenditure will be used to carry out a number of corporate business activities such as continuing the company`s transformation into a holding firm, namely PT Semen Indonesia Tbk," Mr Soetjipto, told reporters.

He said that the other corporate activities included the integration of Thang Long, a Vietnamese firm it had acquired, into Semen Indonesia holding company, and the construction of two new factories in Rembang (Central Java) and Padang (West Sumatra).

"PT Semen Indonesia holding name is expected to have been approved by the ministry of law and human rights in January 2013 while its subsidiary PT Semen Gresik would follow in March," he said.

Dwi Soetjipto hoped that in April the business designs under a strategic holding management through PT Semen Indonesia would have been carried out.

"But we will need some six months to adjust administration, accountancy and human resources management in the Thang Long integration process to the holding company," he said.

Last month, Semen Gresik acquired 70 per cent of Than Long Cement of Vietnam worth about US$157m.

Up to the end of 2012, Semen Gresik Group`s total production (PT Semen Gresik, PT Semen Tonasa and PT Semen Padang) was projected to reach 22.6Mt, while in 2013 it was estimated at 26Mt. This is in line with the operation of Tuban IV and Tonasa V factories.

"If the production of Thang Long’s 2.3Mta is taken into account, the total production of the group would 28.3Mta in 2013," Dwi Soetjipto said.

Published under Cement News