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tate-Owned Enterprises Minister Dahlan Iskan said over the weekend that publicly listed PT Semen Gresik (SMGR) was on track to become the largest cement producer in Southeast Asia next year following the opening of two new cement plants, Tuban IV in East Java and Tonasa V in South Sulawesi.

“After the two plants in Tuban and Tonasa are up and running, Semen Gresik Group’s production will reach about 26 million tons per year. With such production levels, the company will surpass Siam Cement in Thailand, which is currently the largest regional producer,” he said when he officiated the opening of Tuban IV on Saturday.

Dahlan said that SMGR would continue to expand through next year by beginning construction on two more plants — each with a capacity of producing 3 million tons — in Padang, West Sumatra and Rembang, Central Java. The Tonasa V plant in South Sulawesi has entered its completion phase and both it and the Tuban IV plant, each of which received Rp 3.18 trillion (US$334 million) in investment, also have 3 million tons capacity, respectively.

The minister added that the government supported the company’s plan to expand overseas, particularly to Southeast Asian countries like Cambodia, Myanmar and Vietnam.

“Semen Gresik is the one state-owned enterprise tasked with becoming a locomotive of economic growth, our champion for international competition, due to its excellent performance,” Dahlan went on.

SMGR’s president director, Dwi Soetjipto, said the company aimed to sell 19 million tons of cement this year, an increase of 15.3 percent compared with last year.

SMGR has eight subsidiaries including cement producers PT Semen Padang and PT Semen Tonasa. The group holds the largest chunk of the market with 41 percent, followed by PT Indocement Tunggal Prakarsa and PT Holcim Indonesia.

The company’s shares closed at Rp 14,650 apiece on Monday, up 27 percent from the Rp 11,450 year to date average.