Cement producer PT Semen Bosowa Maros kicked off construction on a cement clinker factory, Kiln Plant Line 2, in Maros regency, South Sulawesi, on Monday, aiming to start operations in 2014.
Construction of the plant with a production capacity of 5.2 million tons per year is predicted to cost up to US$310 million and is expected to be completed within 20 months.
The company also plans to build three cement grinding factories in Cilegon, Banten, with production capacities of 1.8 million tons per year; in Sorong, West Papua and in Amurang, North Sulawesi, with each having a production capacity of 700,000 tons per year.
PT Semen Bosowa is also completing a cement factory in Banyuwangi, East Java, which is aiming to be completed next year. The company has set aside up to Rp 6.5 trillion ($674.97 million)—70 percent of which came from bank loans, while the rest came from the company’s internal cash flow--to build the five factories.
The factories—targeted to fully operate in 2015—are expected to boost the company’s cement production to 12 million tons of cement per year.
“Our current production capacity stands at only 3.2 million tons per year, only six percent of the national cement consumption,” company CEO Erwin Aksa said Monday during the groundbreaking of Kiln Plant Line 2 in Maros.
The Indonesia Cement Association recorded that the demand for cement grew by 12.8 percent from 48 million tons in 2010 to 49.2 million tons in 2011. (swd)