Semen Gresik sales grow on exports

JAKARTA (JP): State cement maker PT Semen Gresik (SG) sold 5.5 million tons in the January to May period this year, a 12 percent increase from 4.88 million tons during the same period last year, the company's president, Urip Timuryono, said here on Friday.

Urip said that the increase in the total sales volume was mainly due to a sharp increase in exports during the January to May period.

Exports recorded a steady increase since January last year as most of the production was still sold overseas, he said, adding that exports in May alone almost doubled to 449.63 tons from 299.45 tons in the same month last year.

"The over supply in the domestic market has induced cement producers here to export their output," he said after the company's annual shareholders meeting.

Domestic consumption in 1999 stood at 18.7 million tons of cement, while the country's combined cement production capacity had already reached 46.23 million tons, he added.

He said the company forecast a 10 percent annual growth of sales volume this year on continued strong exports.

In 1999, the company's total sales volume reached 12.65 million tons, up from 10.14 million tons the previous year. Of the above amount, the company exported 4.18 million tons and 1.75 million tons of cement respectively.

In the meeting, the company's shareholders approved the management proposal to distribute a cash dividend of Rp 121.68 per share for the 1999 financial year.

Urip said the company's debt, which would mature this year, was at about Rp 200 billion and about US$22 million in foreign currencies.

Asked whether the company would divest its affiliate, Semen Padang, as demanded by local people, West Sumatrans, he said, "The government in fact did not propose such an agenda (of divestment) to this shareholders meeting."

The annual production capacity of Semen Gresik is at 17.3 million tons, while Semen Padang has a 5.5 million-ton production capacity, according to Urip.

As of late June, the government owns 51.01 percent of Semen Gresik, foreign partner Cemex of Mexico, 25.53 percent, and the public, 23.46 percent. (udi)