Semen Cibinong takes over state firm

Semen Cibinong takes over state firm

JAKARTA (JP): The publicly listed PT Semen Cibinong is to acquire all the assets of PT Semen Nusantara, for around Rp 650 billion (US$282.60 million).

The takeover, which was unanimously approved by shareholders yesterday, will increase the cement production capacity of Semen Cibinong to 4.3 million tons per year from 2.9 million tons at present.

Semen Cibinong president Hashim Djojohadikusomo said that the production capacity is expected to further increase to 5.5 million tons per annum when an expansion project, which is now being carried out by Semen Nusantara, is completed in the first quarter of 1997.

Semen Cibinong already held a portion of the shares of Semen Nusantara, a state-owned company based in Cilacap, Central Java, before the shareholders gave the green light yesterday for "full acquisition".

Hashim acknowledged that the competition in the domestic cement market will be tighter next year as the impact of increased domestic cement production takes effect.

The tight domestic market, however, won't really affect the market value because cement stocks which cannot be absorbed at home can be exported, he said, because demand on the overseas cement market, especially in developing countries, remains promising.

Hashim also said that Semen Cibinong plans to establish a cement plant in Myanmar to boost its overseas marketing network in July.

"The feasibility study on the construction of the Myanmarese plant has been completed," he said. "And we hope to start the construction in July."

Hashim said that the Myanmarese cement plant, which will have a production capacity of one million tons per annum, will be built in cooperation with the state-owned Union Myanmar Economic Holding.

He noted that Myanmar, which at present produces around 400,000 tons per annum, imports most of its cement needs, which exceed 1.8 million tons per year at present.

"The opportunities in Myanmar are great, not only because of the low domestic production but also due to the high price of the commodity in the country," he explained. (hen)