Semen Baturaja sets higher 2014 capex

PT Semen Batujara plans to increase capital expenditure for this year by 87 per cent YoY to IDR750bn (US$61.58m), according to reports by the Investor Daily. The investments will be geared towards increasing capacity and financing operating costs.

The company plans to build a new factory to boost its capacity from 2Mta to 3.85Mta. The new  plant is scheduled to begin operations in the fourth quarter of 2016. Semen Baturaja raised IDR1.3bn from an Initial Public Offering in June and will put all the IPO proceeds towards the plant, with additional funds being sourced from bank loans and internal cash.