Danish company wins $149m cement projects<\/p>\n
JAKARTA (JP): The state-owned cement companies PT Semen Gresik
\nand PT Semen Padang awarded two contracts worth US$149.1 million
\nyesterday to F.L. Smidth-Fuller Engineering of Denmark to build
\ncement plants in East Java and West Sumatra.<\/p>\n
Minister of Industry Tunky Ariwibowo witnessed the signing in
\na ceremony at his office.<\/p>\n
The contracts were signed by the president of Semen Gresik,
\nAnang Fuad Rivai, the president of Semen Padang, Abu Bakar, the
\nchairman of the board of F.L. Smidth-Fuller Engineering, Birger
\nRiisager, and the chief executive officer of Fuller, Ib Jacobsen.<\/p>\n
The plants will each have a production capacity of 2.3 million
\ntons of cement per annum. The construction of the East Java
\nplant, Tuban III, will cost $80.7 million, while the West Sumatra
\nplant, Indarung V, will cost $68.4 million.<\/p>\n
The construction of the two plants will start next January and
\nthey are scheduled to start commercial operations in the middle
\nof 1998.<\/p>\n
In what was referred to as a \"consolidation\", Semen Gresik
\nmerged with Semen Padang and the South Sulawesi-based PT Semen
\nTonasa last month, strengthening further its position as
\nIndonesia'S major cement producer, with an expected total annual
\ncapacity of 10.9 million tons by the end of the year.<\/p>\n
After the completion of the Indarung V and Tuban III plants,
\nthe merged companies will have a combined annual production
\ncapacity of 18.6 million tons.<\/p>\n
Semen Gresik, which currently produces 4.6 million tons per
\nannum, will increase its annual production capacity to 8.7
\nmillion tons in 1998, Semen Padang will increase its production
\ncapacity from 3.5 million tons at present to 5.8 million tons and
\nSemen Tonasa will lift production capacity from 1.1 million tons
\nto 3.4 million tons.<\/p>\n
\"Besides increasing production capacity, the company, under
\nits consolidation program, will also intensify its marketing and
\ndistribution, as well as improve the corporation's management,
\ninvestment and human resources,\" said Rivai.<\/p>\n
He said the consolidation will promote efficiency, which will
\nbenefit the company's shareholders.<\/p>\n
Semen Gresik has floated shares and listed them on the Jakarta
\nStock Exchange.<\/p>\n
The national supply of cement, including that from privately-
\nowned cement firms, is estimated to be 20 million tons this year,
\nwhile the demand is approximately 25 million tons.<\/p>\n
\"After the completion of the Tuban III and the Indarung V
\nprojects, the country's total production capacity will reach 44.7
\nmillion tons in 1998, when the domestic demand is projected at
\n39.2 million tons,\" Rivai said.<\/p>\n
The domestic demand for cement increased by 20 percent to 21.5
\nmillion tons in 1994 and is estimated to rise by 16 percent to 25
\nmillion tons this year. (kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/danish-company-wins-149m-cement-projects-1447893297",
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"sponsor": "Okusi Associates",
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