Kupang boosts cement output

Kupang boosts cement output

JAKARTA (JP): State-owned PT Semen Kupang will build a second
plant in Kupang early next year with a production capacity of
400,000 tons of cement per year.

"Total investment for the expansion will be Rp 110 billion
(US$47.4 million)," PT Semen Kupang's president Satar Taba said
as reported by Antara from Kupang, East Nusa Tenggara, over the
weekend.

He said the Rp 110 billion would be derived from the firm's
retained profit.

Satar said the company was also trying to increase the first
plant's production capacity from the current 180,000 tons per
year to 270,000 tons.

He said if the company continued to be profitable it would
build a third plant in early 1999.

The company, which was established in 1984, was in the red
during the first five years of operation. The losses were
particularly caused by management and marketing problems, and
poor human resources.

"During the last four years our profit has increased
remarkably. In 1993 our profit reached Rp 900 million. It
increased to Rp 1.8 billion in 1994 and Rp 5 billion last year,"
Satar said, adding that he expected this year's profit would
further increase. (bnt)