Semen Gresik`s capital expenditure set at US$400 mln

Semen Gresik`s capital expenditure set at US$400 mln

Dwi Soetjipto. (ANTARA)

"But we will need some six months to adjust administration."
Gresik, East Java (ANTARA News) - State-owned cement firm PT Semen Gresik has set US$400 million (Rp4 trillion) in capital expenditure for its corporate business activities in 2013, its president director said.

"The expenditure will be used to carry out a number of corporate business activities such as continuing the company`s transformation into a holding firm, namely PT Semen Indonesia Tbk," Dwi Soetjipto, its president director, said here on Monday.

He said that the other corporate activities included the integration of Thang Long, a Vietnamese firm it had acquired, into Semen Indonesia holding company, and the construction of two new factories in Rembang (Central Java) and Padang (West Sumatra).

"PT Semen Indonesia holding name is expected to have been approved by the ministry of law and human rights in January 2013 while its subsidiary PT Semen Gresik would follow in March," he said.

Dwi Soetjipto hoped that in April the business designs under a strategic holding management through PT Semen Indonesia would have been carried out.

"But we will need some six months to adjust administration, accountancy and human resources management in the Thang Long integration process to the holding company," he said.

Last month, Semen Gresik acquired 70 percent of Than Long Cement of Vietnam worth about US$157 million.

He said that the construction of the new factories was one of the efforts to increase production capacity in line with the increase of demand for cement at home.

Up to the end of 2012, Semen Gresik Group`s total production (PT Semen Gresik, PT Semen Tonasa and PT Semen Padang) was projected to reach 22.6 million tons, while in 2013 it was estimated at 26 million tons. This is in line with the operation of Tuban IV and Tonasa V factories.

"If the production of Thang Long`s 2.3 million tons is taken into account, the total production of the group would 28.3 million tons in 2013," Dwi Soetjipto said.