Semen Gresik cuts output

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)