Semen Indonesia reveals new expansion plans

Semen Indonesia is planning to expand to the west and set up a new cement facility in the province of Aceh, located at the northern end of Sumatra. After announcing plans to construct a new cement facility in Papua earlier this year, Semen Indonesia revealed that it is now considering the construction of new facilities in Aceh, Sulawesi and Kalimantan. The new plants will help the manufacturer meet increasing national demand for cement, which, according to Semen Indonesia’s Finance Director Ahyanizzam, is expected to rise by 5 – 6% next year and will continue to grow each year due to a number of infrastructure and property development projects.

Ahyanizzam told local press that each of the plants would have the capacity to produce up to 3 million tpa of cement (similar to the company’s Indarung VI plant in Padang, West Sumatra, and its greenfield project in Rembang, Central Java). The investment needed for the new plants will be approximately the same amount as the cost of the Indarung VI plant (around US$352 million) and funding will be predominantly sourced from bank loans. According to Ahyanizzam, the company is currently looking at suitable locations for the Aceh plant and will begin working on the project in 2015.

Edited from various sources by Rosalie Starling

Sources

• The Jakarta Post
• Energy Today

Read the article online at: https://www.worldcement.com/asia-pacific-rim/22102014/semen-indonesia-reveals-new-expansion-plans-713/