Padang, W Sumatra (ANTARA News) - PT Semen Padang said the sixth unit of the Indarung cement factory of PT Semen Padang is expected to produce 2 million tons of cement this year.

The new cement factory is designed to have an annual production capacity of 3 million tons but this year it is expected to turn out only two million tons.

Until end of May the plant already produced around 500,000 tons of cement after four months in operation," President Director of PT Semen Padang Benny Wendry said here on Friday.

Benny said the company recorded a 5 percent increase in domestic sale and it hopes to further increase the sale. He said exports have three times higher than in previous years.

The company has 11 bagging plant including in Aceh, Belawan, Dumai, Batam, Jakarta, Ciwandan and Lampung to back up its marketing in the country.

Benny said domestic sales in the first four months of the year reached 1.8 million tons, down 4.8 percent from the same period in 2016. Meanwhile, its exports totaled 294,971 tons or an increase of 421.6 percent from the same period last year of only 56,553 tons.

West Sumatra Governor Irwan Prayitno said the operation of the new plant, the Indarung, of PT Semen Padang would contribute to an increase in the regional income. The indirect contribution could be in the form of tax by the state company, the governor said.

PT Semen Padang is a subsidiary of the state-owned PT Semen Indonesia, the countrys largest cement producer.

(AS/b003/B003)

Editor: Suryanto
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