Semen Cibinong to build two factories in Java
Semen Cibinong to build two factories in Java
BOGOR, West Java (JP): The Semen Cibinong Group will establish a new cement production unit at its industrial complex in Narogong village here and another new one in Tuban, East Java, said the company's president, Hashim Djojohadikusumo.
"We have received the permit from the Investment Coordinating Board for the construction of the new production units," Hashim told reporters visiting the Narogong plant yesterday.
He said the construction of the new unit at Norogong, which will have an annual capacity of 2.6 million tons, will start next year.
However, he refused to give details on the Tuban project, which will be constructed by PT Dwima Agung, a subsidiary of the group.
"We have not decided yet on the investment of both factories nor on the production capacity of the Tuban unit," Hashim added.
After the operation of the Tuban project, Semen Cibinong's cement will bear three brand names: Semen Kujang for its cement produced at Narogong, Semen Portland Nusantara for that produced by its plant in Cilacap, Central Java, and Semen Dwima Agung for that to be produced by the Tuban unit.
The Narogong plant has an annual production capacity of three million tons and the Cilacap plant one million tons.
According to the Indonesian Cement Association, the country's production of cement is expected to increase from 21.9 million tons in 1994 to 24.7 million tons in 1995 and to 27.2 million tons in 1996, while its demand is projected to increase from 21.5 million tons to 25.8 million tons and to 28.8 million tons respectively.
Hashim said that the country's demand for cement will continue to exceed its production until 1998.
Indonesia imports cement when it faces a seasonal shortage of supplies and exports some when domestic demand is low, Hashim said.
He acknowledged that Malaysia's recent import of three million tons of cement from Indonesia has pushed up the domestic price, which is usually far lower than the international market price.
Dust
Hashim, who accompanied a group of government officials on yesterday's plant visit here, explained the company's environmental measures to eliminate air pollution.
He said Semen Cibinong has had dust collectors and electrostatic precipitators installed since the Narogong plant started operating in 1975.
The company's director, Achmad Slamet, said that Semen Cibinong has always obeyed the emission levels set by the Ministry of the Environment.
"Before 1990, our dust collector could limit dust emission to 200 milligrams per normal cubic meter, far lower than the 400 milligrams then allowed by the environment office," said Slamet.
He added that the company replaced the equipment in 1990 with a new one worth Rp 11 billion (US$4.8 million), which can limit the dust emission to 100 milligrams, lower than the current permissible emission level of 150 milligrams.
Slamet said that the company will set up three additional pieces of equipment to continuously monitor emission levels.
"The equipment procurement will cost Rp 300 million ($131,000)," said Slamet.(kod)