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)