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)