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)