Semen Tonasa set to up production

Semen Tonasa set to up production

JAKARTA (JP): PT Semen Tonasa, a subsidiary of publicly listed
state-owned cement producer PT Semen Gersik, is set to produce
3.34 million tons of cement this year, up from 3.2 million tons
in 1997.

The company's president, Nizar Dt. Kayo, said Semen Tonasa had
also set a sales target of 3.17 million tons this year, about the
same as last year.

But Nizar said no target had been established for net profits.

Last year, Nizar said, the company posted total net profit of
Rp 58 billion (US$10.54 million).

Semen Tonasa, located in South Sulawesi, would also build six
packing plants in the eastern part of the country to support the
company's distribution network nationwide, Nizar said.

Antara reported yesterday that among the six packing plants to
be built this year was one in Ujungpandang, South Sulawesi, with
annual production capacity of 600,000 tons.

Others would be located in Bitung, North Sulawesi, Samarinda,
East Kalimantan, Banjarmasin, South Kalimantan, Ambon, Maluku,
and Bali, each with annual capacity of 300,000 tons.

Previous reports said the company planned to build two more
packing plants in Lembar, West Nusa Tenggara, and Palu, Central
Sulawesi, with annual production capacity of 300,000 tons each.

Another affiliate of Semen Gresik, PT Semen Padang in West
Sumatra, will build two packing plants in Ciwandan, West Java,
and Lampung, with annual capacity of 600,000 tons each.

The Ministry of Industry and Trade has projected the nation
will register a 29.3 percent increase in cement supply this year
to 36.86 million tons, up from 27.88 million tons last year.

Domestic demand for cement is projected to grow to 29.34
million tons, a 13 percent increase over 27.94 million tons in
1997. (aly)