Semen Gresik to sign agreement with Cemex

Semen Gresik to sign agreement with Cemex

JAKARTA (JP): Shareholders of publicly-listed cement producer,
PT Semen Gresik, gave approval on Friday to the company's
proposal to sign technical aid and export cooperation agreements
with its minority shareholder Mexico's Cemex S.A. de C.V.

Semen Gresik president Urip Timuryono said the agreement would
enable it to export a minimum of 1.5 million tons of cement a
year to Cemex, which would then reexport it to countries in
Europe, Africa and North America, other than Gresik's regular
market, he said.

"Cemex will sell our cement at the market price, and benefit
from the price differences," Urip told reporters after the
company's general shareholders meeting.

Cemex would also provide five years technical assistance in
the areas of production, logistics, finance, marketing, human
resources and information systems.

Cemex currently owns 20 percent of Semen Gresik, the
government has a 45 percent stake, and the remaining 35 percent
is owned by the public.

Last year, Cemex bought a 14 percent stake in Semen Gresik
from the government and another 6 percent from the public through
a tender offer.

Semen Gresik is the first of the state-owned firms sold to
strategic investors since the government's privatization program
began last year.

Urip said Cemex would have to buy another 5 percent stake in
Semen Gresik through a tender offer before September in order to
retain its seats on Gresik's board of directors and
commissioners.

Urip then reported that Semen Gresik sold 8.53 million tons of
cement on the domestic market last year, and exported 1.75
million tons to Australia, Singapore, Papua New Guinea, the
Maldives, Bangladesh, Myanmar, Vietnam, Sri Lanka, Yemen, South
Africa, Nigeria, Egypt Chile, Dubai and Mauritius.

Urip said he expected the sales volume would remain at the
same level as last year due to an anticipated zero growth in the
country's economy this year. (das)