Semen Kupang II to operate in June

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)