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Semen Gresik to construct two new plants starting next year

World Cement,

Indonesia’s Semen Gresik has told The Jakarta Post that it will build two new plants next year.

“One of the plants will be built in Sumatra, perhaps in West Sumatra or Aceh. I cannot disclose the location of the other plant because we are still working on it,” Semen Gresik president director Dwi Soetjipto told The Jakarta Post.

Construction of the plants is due to begin in the latter half of 2012, with completion scheduled for 2015. Total capacity of the two plants will be 3 million tpa at a cost of Rp.7 trillion (US$768.39 million).

“We will fund about 30 to 40% of the expenses with our internal cash and about 60% from external sources, which can be bank loans or bonds,” Dwi said.

PT Semen Gresik, a state-owned company, is currently working on the construction of two plants, due to be finished in December and April, respectively. Each plant will have a production capacity of 2.5 million tpa, contributing to a group total of 19.5 million t production across 10 plants by the end of this year.

Indonesia is currently experiencing a construction boom, with cement consumption expected to grow by around 8% this year according to the Indonesian Cement Association.

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