Cement firm halts operation

Cement firm halts operation

JAKARTA (JP): PT Semen Andalas Indonesia, a cement firm in
Aceh, stopped its production activities for nine days, from July
20 through July 29, due to an abundance of cement stored in its
warehouses.

The company's production manager, Sulantora told journalists
in Banda Aceh last Saturday that some 60,000 tons of cement were
still stockpiled in its warehouses, including 35,000 tons in
Lhoknga, Aceh, 3,000 tons in Lhokseumawe, Aceh, 15,000 tons in
Belawan, North Sumatra, and 6,000 tons in Batam island, Riau.

Sulantora said market demands for cement in Aceh and other
northern parts of Sumatra had been low during the last few
months.

The temporary closure of the company's plant was contradictory
to the annual shortage of cement supplies, which is usual in the
second semester due to increases in construction activities.

The Association of Indonesian Cement Producers predicts that
cement crises will haunt the country until 1997 when a number of
cement expansion projects or new cement factories start
commercial production. (rid)