Semen Indonesia To Construct Cement Plant in Rembang

Selasa, 6 Mei 2014 14:39 WIB

The company's President Director, Dwi Soetjioto, noted here on Monday evening that the groundbreaking of the project would be carried out in June following the completion of land clearance, equipment procurement, and engineering activities.

"We target that by the end of 2016, the commercial operations of the plant will strengthen our marketing force," he affirmed.

Currently, PT Semen Indonesia controls almost 44 percent of the national market, and the company is optimistic that with the completion of new plant development projects in several regions, including Rembang, its leading position in the domestic market will be maintained.

With the total investment, it means that the cost of cement per ton will be equal to US$134.2, which is in the middle range of investment value per ton of similar transactions ranging between US$116.17 and US$264.71.

"The US$134.2 cost of investment per ton means the plant development in Rembang is quite efficient," Soetjipto reiterated.

In 2008, PT Semen Indonesia planned to build a cement plant in Sukolilo, Pati, Central Java, but canceled it following protests by villagers and several non-governmental organizations.

He claimed that as many as 3,817 workers will be absorbed in the project, and later, when it is already operational, the plant will employ 1.1 thousand workers.

Dwi Soetjipto stated that with the implementation of expansion projects in several regions, including Rembang, the company's production capacity by 2016 will reach 39.3 million tons, and later reach 40.8 million tons by 2017.

"By increasing the production capacity, we will continue to lead the market and at the same time, assure that the national cement industry will have a stronghold in its own country," he added.