Semen Andalas's expansion

Semen Andalas's expansion

JAKARTA (JP): PT Semen Andalas Indonesia yesterday announced
plans to gradually step up its annual cement production to four
million tons.

Semen Andalas Director Martin Wikes said the cement plant's
production is expected to reach 1.4 million tons by the end of
this year.

Wikes said the company intends to further increase its cement
production to two million tons by 1998 and to four million tons
over the "next few years", Antara news agency reported.

The expansion plan was decided at the company's shareholders
meeting on July 24.

The overall project will cost at least US$26 million and will
be followed by the construction of a kiln, an important piece of
cement processing equipment, at the company's cement plant in
Lhok Na, Aceh.

The expansion will also include the construction of a new
cement factory in North Sumatra, with investment from Lafarge,
the largest shareholder in Semen Andalas and the second largest
cement company in the world.

"The location and raw material for the North Sumatra plant has
been decided on," Wikes said, adding that it will be developed in
collaboration with PT Semen Langkat Sumatra, Lafarge's partner in
Semen Andalas. (pwn)