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PT Semen Bosowa breaks ground on new 5.2 million tpa clinker plant

World Cement,

Indonesia’s PT Semen Bosowa Maros began construction of its new cement clinker plant in the Maros regency of South Sulawesi on Monday 19 October 2012. Operations at the 5.2 million tpa plant are expected to commence in 2014, and the total cost of the project is projected at around US$310 million.

Also in the pipeline for Semen Bosowa are plans to build three grinding plants to operate as satellites to the clinker plant. The first, in Cilegon, Banten, will have a production capacity of 1.8 million tpa. The other two in Sorong, West Papua and Amurang, North Sulawesi, will each have a production capacity of 700 000 tpa.

These projects are on top a cement plant that Semen Bosowa currently has under construction in Banyuwangi, East Java, which should be completed next year.

The company has budgeted a total US$674.97 million, 70% of which takes the shape of bank loans, to put up all five of these projects. With the goal of being fully operational by 2015, these openings will add 12 million tpa to Semen Bosowa’s total production capacity, which currently stands at 3.2 million tpa and accounts for only 6% of Indonesia’s total output.

With Indonesia’s economy growing, and Indonesia Cement Association figures showing an increase of almost 13% in cement demand between 2010 and 2011, the opening of this new capacity is likely to be welcomed to the market and strengthen Semen Bosowa’s position considerably. At current (2011) consumption levels of 49.2 million t, a production capacity of 12 million tpa is no small figure. And yet, if current growth trends continue within Southeast Asia’s largest economy, it is the kind of figure that will be necessary to keep up with the game.

Written by Jack Davidson.

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