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Lampung to have biggest concrete plant in SE Asia

Lampung will soon have what is claimed to be the biggest concrete manufacturing plant in Southeast Asia after construction of the plant began on Thursday

Oyos Saroso H.N. (The Jakarta Post)
Bandarlampung
Sat, May 24, 2014

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Lampung to have biggest concrete plant in SE Asia

L

ampung will soon have what is claimed to be the biggest concrete manufacturing plant in Southeast Asia after construction of the plant began on Thursday.

The plant is being built on 90 hectares of land in Sumur village, Ketapang district, South Lampung regency, and is expected ultimately to have an annual production of 700,000 tons of concrete pilings 2 meters in diameter and 60 m long.

Wilfred Singkali '€” president director of PT Wijaya Karya (Wika) Beton, which is building the plant '€” said that the plant was designed to anticipate increasing demand for concrete materials ahead of several planned infrastructure projects in the country.

Wika Beton has secured several of these projects including the Dompak Bridge project in Riau Islands and the Sunda Strait bridge project, which will connect Java and Sumatra Islands.

'€œThe plant'€™s establishment is basically in line with the economic demand to further develop Sumatra,'€ Wilfred said on the sidelines of the plant'€™s ground-breaking ceremony.

'€œFor the initial stage, we'€™re aiming to produce 150,000 tons of concrete per year.'€

The company has earmarked Rp 350 billion (US$30.4 million) for the plant'€™s initial phase of construction.

Ninety percent of the money is coming from the funds generated during its initial public offering earlier this year and the remaining 10 percent will be from internal cash reserves.

Wika Beton, a subsidiary of state-owned construction company PT Wika, will in the first stage build two production lines for the concrete piles on a 26-hectare site and 41-hectare quarry.

With the two production lines, the company is expected to produce 150,000 tons of concrete per year initially, with an estimated contribution to the company'€™s revenues of Rp 250 billion.

The company is planning to increase the production lines to eight with a total production capacity of 700,000 tons per year in line with increasing in demand. Wilfred said that even though the plant was located in Lampung, the company would initially employ workers from Bogor, West Java and other areas in Java.

'€œIn the future, we will definitely recruit more local workers, after we have provided them with training,'€ he said. Meanwhile, South Lampung Regent Rycko Menoza said that the biggest concrete factory in Southeast Asia would make history.

'€œLampung will be the most advanced province in Sumatra as it is included within the MP3EI [Master Plan for the Acceleration and Expansion of Indonesian
Economic Development] with the Sunda Strait bridge and Trans-Sumatra Highway projects,'€ Rycko said.

Rycko said that the establishment of the plant would hopefully support infrastructure projects in the area, which had received little attention from the central government.

'€œThe national roads were no longer in a good condition. The central government should pay us more attention,'€ he said.

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