Tue, 08 Feb 2011

Jakarta (ANTARA News) - Publicly-listed cement maker PT Semen Gresik Tbk plans to set aside Rp6.3 trillion (US$700 million) in funds until 2015 to expand its business.

"The funds will be needed to increase annual production capacity to 30.5 million tons in 2015 from 20 million tons in 2011," PT Semen Gresik President Director Dwi Sutjipto said following a working meeting with the House of Representatives (DPR) Commission VI at the parliament building here on Monday.

The funds would originate from both external and internal sources. "About Rp4 trillion or 50 percent of the funds will come from external sources," he said.

He said the current condition of Semen Gresik was very likely for the company to make banking loans or seek other alternative financing.

Semen Gresik plans to build two new plants in West Sumatra and Central Java. "Our investment this year already covers part of the funds needed to build the two plants," he said.

With the business expansion, until 2015 the company`s production capacity would increase by 2.5 million tons from its new plant in Central Java, 2.5-3 million tons from its new plant in West Sumatra, and 2.5 million tons from its plant in Tonasa, South Sulawesi, he said.

Semen Gresik currently holds a 43-45 percent share of the domestic cement market.

He said the construction of the new plants would be directed towards preserving the company`s domestic market share and reserve stocks for exports.

The company has targeted to see its net profit growing 10-15 percent this year from the projected Rp3.63 trillion this year.(*)