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)