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)