Semen Cibinong to build cement plant in Tuban

JAKARTA (JP): Publicly listed cement maker PT Semen Cibinong will set up a US$400 million cement plant in Tuban, East Java early next year with an annual capacity of 2.6 million tons.

Semen Cibinong's President Hashim S. Djojohadikusumo said the new project was due to come on stream in 2000.

Hashim, the son of the country's most senior economist Sumitro Djojohadikusumo, said the plant's construction was intended to begin early 1996 and be completed in 1998.

"But, the project was postponed due to an oversupply projected between 1998 and 2000," Hashim said after the company's annual shareholders meeting yesterday.

He said Indonesia would have a cement oversupply of between three to four million tons a year from 1998 to 2000.

Yesterday's meeting approved the management's proposal to pay Rp 32.8 billion in dividends for 1996, or Rp 200 a share.

"The dividend payout represents 31.12 percent of the total net profit in 1996," he said.

The company booked total net revenues of Rp 768.26 billion in 1996, up from Rp 694.84 billion in 1995, and a net profit of Rp 105 billion, a 15 percent increase.

Shareholders also approved the company's plan for a cement joint venture plant in Myanmar with total investment of about US$105 million.

Hashim said Semen Cibinong would hold a 70 percent stake in the venture and 30 percent would be held by state-owned Myanmar firm, Union of Myanmar Economic Holdings Limited.

He said the plant was expected to start production with an annual capacity of one million tons in 2000.

Hashim said Semen Cibinong's total production capacity last year was 7.1 million tons, three million tons from its Narogong plant in West Java and 4.1 million tons from its Cilacap plant in Central Java. (09)