Semen Gresik cuts output

PURWOKERTO, Central Java (JP): PT Semen Gresik said yesterday that the economic turmoil had forced it to slash its annual production by almost 50 percent to 3.5 million tons from the usual 6.9 million tons.

The company's director of research and development, Djoko Susilo, said the crisis had slowed domestic demands for cement nationwide.

National cement production this year is estimated to be 35.8 million tons while national demand is expected to be 27.9 million tons.

The rupiah's 70 percent collapse against the U.S. dollar since last July has led to the delay and halting of many construction projects across the country.

Djoko said the company's cement exports, which account for 70 percent of its production, had fallen to about 150 tons a month from 200 tons before the crisis.

PT Semen Gresik is part of the Semen Gresik Group, which also owns PT Semen Padang in West Sumatra and PT Semen Tonasa in South Sulawesi. The group controls 40 percent of the country's cement market. (45/das)