PT Indocement to build two cement factories

Citeureup, West Java (ANTARA News) - PT Indocement Tunggal Putra Tbk is conducting a feasibility study to build two cement factories with the production capacity of 2.5 million tons each per year.

"Of the two new cement factories, one will be built in Central Java and the other outside Java," the company`s spokesman Sahat Panggabean said here on Monday.

Panggabean said the company was optimistic that domestic demand for cement would continue to increase and therefore the feasibility study was being conducted to build the two new cement factories.

He said the company would make use of the strong and healthy balance sheet at present to anticipate capital expenditures.

In addition, Panggabean said PT Indocement would also strengthen

the business of ready mixed concrete and aggregate quarry

to anticipate increasing demands and volcanic rocks for the construction of housing and tall buildings, especially in Jakarta and West Java.

Meanwhile, PT Indoncement Corporate Communication Department Head Aldo Yuliardy said the company at present had three cement factories namely in Citeureup, West Java; in Palimanan, West Java; and in Tarjun Kota Baru, South Kalimantan.

Aldo said the factory in Citeureup has nine production units with a capacity of 11.9 million tons, Palimanan two with a capacity of 4.1 million tons, and Tarjun Kota Baru has one production unit with a capacity of 32.6 million tons.

The company`s Finance Director Christian Kartawijaya said in March this year Indocement planned to increase investment to raise its production capacity from two million tons a year to 20.6 million tons.

At the time he said the company would add US$140 million to its investment to increase the number of the mills at its plant in Citereup, West Java, expected to start operating in 2012 or 2013.

He said the plan was based upon optimism that domestic demands for cement would continue to increase. (*)

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