The two factories would have an annual production capacity of 2.5 million tons each, company`s president Daniel Lavalle said here on Thursday.
One of the factories is to be located in Central Java and the other outside Java, corporate secretary Sahat Panggabean told ANTARA news agency here on Thursday.
Sahat said, the country`s second largest cement producer had signed an initial agreement on provision of equipment and construction with the Sinoma Group.
The agreement was for the construction of a new factory in Citeureup, Bogor, to cost up to Rp6.5 trillion, he said, adding the cost would be part of capital spending planned by the company.
He said the company is prompted to build the project by growing demand for cement in the country especially for infrastructure projects.
"Construction of new infrastructure projects would also boost development of property around the infrastructure," he said.
The company, therefore, will start the construction of a new cement factories with a production capacity of 4.4 million tons a year in its complex in Citeureup this year to be completed in 2015.
Daniel Lavalle said apart from being prompted by growing demand, the capacity expansion is to maintain the company`s competitiveness in the market.
The company has also prepared improvement of its logistic and distribution systems in the country, he said.
He cited as significant development made by the company in the production of ready for use concrete (RMC)in 2012.
Through application of price strategy, Indocement could boost sales of RMC by 44.8 percent to 3.5 million cubic meters in 2012, he said.
Currently Indocement has three factories in operation - one in Citeureup, one in Palimanan of Cirebon and another in Tarjun, Kota Baru, South Kalimantan altogether with a total production capacity of 18.6 million tons a year.
The one in Citereup with nine production units has a production capacity of 11.9 million tons, the one in Palimanan with two production units has a production capacity of 4.1 million tons and the one in Tarjun has a production capacity of 2.6 million tons.
(H-ASG/B003)
Editor: Jafar M Sidik
Copyright © ANTARA 2013
