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Indonesia’s Semen Padang will build a sixth cement plant

World Cement,

Indonesia’s PT Semen Padang, with a capacity of 6.5 million t of cement, is planning a sixth plant to boost capacity. Construction of the new plant, called Indarung VI, is set to begin before the end of this year. Once completed, the plant will have a total production capacity of 3.5 million tpa, which will help the company to meet market demand. In June, PT Semen Padang began work on the construction of a 900 000 tpa cement mill in Dumai, Riau.

Semen Padang is a subsidiary of state cement producer PT Semen Indonesia (previously Semen Gresik), which recently reported a 22.9% increase in net profit for the first half of this year. The Rp.2.58 trillion profit was reportedly fuelled by rising income, as sales rose 18.3% from 10.32 million t to 12.23 million t.

Nationally, cement sales grew 7.5% to 27.83 million t in 1H13, up from 25.89 million t in 1H12. The company attributed its increased sales to its new Tuban IV and Tonasa V plants and ‘the ever increasingly solid synergy, particularly in the marketing and distribution of its products, within Semen Indonesia Group’.

Semen Indonesia has a 43.6% share of the domestic market in Indonesia.

Edited from various sources by Katherine Guenioui.

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