Indocement builds its 11th production unit

JAKARTA (JP): Publicly listed PT Indocement Tunggal Prakarsa broke the ground in Citeureup, West Java, yesterday to construct its 11th cement production unit with a production capacity of 7,500 tons per day, or 2.5 million tons per year.

The company's president, Sudwikatmono, said at the groundbreaking ceremony that the constructed unit, when it starts operating at the end of 1999, would increase the firm's total annual production capacity to 15.8 million tons, representing 36 percent of the country's total cement production capacity.

Director General of Metal, Machinery and Chemical Industries Effendi Soedarsono said the country's total annual production capacity was 33.6 million tons, while the demand was about 29 million tons annually.

Because annual demand is projected to increase by 12 percent per annum to 56 million tons by 2003, the country would need two or three new cement plants in each of the coming years, he said.

The government, therefore, has invited domestic and foreign investors to take advantage of the growing demand by constructing new cement plants in the country, he added.

Sudwikatmono said his company's new unit was being constructed by a consortium of Marubeni Corporation and Kawasaki Heavy Industries, both of Japan.

Indocement, the nation's largest cement manufacturer, has nine production units in West Java and another in South Kalimantan, which is jointly owned by Kodeco of South Korea.

The company recorded net sales of Rp 3.94 trillion (US$1.66 billion) in 1995 with an after-tax profit of Rp 475.92 billion. Its total assets as of 1995 were Rp 8.2 trillion. (10)