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)