PT Semen Andalas, which is 99 per cent owned by Lafarge, said its new cement factory in Lhok Nga, Aceh, will start operation in March 2011.

The new factory with a production capacity of 1.6Mt is a replacement for one destroyed by a tsunami which devastated Aceh in late 2004.

Construction of the new factory began in 2007 with an investment of around US$300m, industry minister MS Hidayat said.

Semen Andalas also has put into operation a packing terminal at the Lhok Nga port with two packing machines, Hidayat said.