Bosowa Corp set to start Banten plant construction, Indonesia

Bosowa Corp set to start Banten plant construction, Indonesia
17 December 2013

The Bosowa Corporation said it plans to start construction of a new cement plant in Cilegon, Banten, in the first quarter of next year.

Company CEO, Erwin Aksa, told the Jakarta Post that should construction begin in March 2014, operations could commence by the end of 2015. The new facility is expected to serve the surrounding areas, notably Banten, Greater Jakarta and Lumpung, Erwin added.

The project is expected to cost an estimated cost of IDR1.5trn (US$123.92m), 70 per cent of which will be funded through loans and the remainder by internal cash.

Bosowa is also constructing another 1.5Mta plant in Banyuwangi, East Java which is scheduled for completion in the third quarter of next year. The plant will serve markets in East Java, Bali and West Nusa Tenggara.

Output from the two new plants will also help Bosowa boost market share from four to six per cent, Erwin noted.

The company is also expected to begin operations at its 1.8Mta cement plant in Makassar, South Sulawesi, later this month.

Published under Cement News