Semen Kupang II to operate in June

JAKARTA (JP): The East Nusa Tenggara-based cement company PT Semen Kupang will commence the operation of its second plant in June, after a delay of almost three years, a company executive said.

Madjid Nampira, the finance and sales director of the state- owned company, said late last week the construction of the second plant, Semen Kupang II, in Osmo, East Nusa Tenggara, was 88 percent complete.

"The initial operation in June will start with only two of the planned five production facilities," he was quoted as saying by Antara news agency. He added full operation would begin in February next year.

Construction of Semen Kupang II began in 1997 but was delayed when the economic crisis hit. The plant was initially scheduled to begin operation in March 1999.

Madjid said the project was continued after the cement producer obtained a new loan from state Bank Mandiri.

PT Semen Kupang, which sells its cement in East Nusa Tenggara, West Nusa Tenggara, Maluku and Irian Jaya, currently produces about 300,000 tons of cement annually.

When completed, the new plant will have the capacity to produce about 300,000 tons of cement a year

Madjid also said the company was considering increasing its cement sales to East Timor, which gained independence from Indonesia in 1999.

According to marketing studies, East Timor is a promising market because it must repair and rebuild damaged infrastructure and public facilities.

Madjid said cement demand in East Timor could reach 120,000 tons a year.

"This month, the company will provide about 3,000 tons of cement to East Timor," he said.

The company also plans to export some of its cement to neighboring Australia after the new plant begins full operation, he said.(03)