Indocement sets 2014 capex spend, Indonesia

PT Indocement Tunggal Prakarsa, part of the HeidelbergCement Group, plans IDR4-5trn in capex next year, mostly geared towards boosting the company's production.

"Most of it will be used to finance the ongoing construction of our brownfield plant in Citeureup [Bogor, West Java]," Sukanto told a news conference on Thursday. Funds will be sourced from internal cash.

The brownfield works will have a capacity of 4.4Mta  China-based Tianjin Cement Industry Design and Research Institute will supply the equipment and engineering expertise for this project, which will be Indocement's 14th line.

Indonesia's second-largest producer is also finalising the construction of another cement mill at its main Citeureup site which will have a capacity of 1.9Mta. Completion is scheduled for this year and funding was listed under the company's 2013 capex. The new mill will lift Indocement's capacity to 20.6Mta by year end. In addition, the company is working on feasibility studies for two greenfield plants, each with a  capacity of 2.5Mta.