Semen Gresik to increase cement exports in 2009

Indonesia’s state-owned cement maker PT Semen Gresik is planning to increase its export volume despite the economic crisis in 2009, the company`s president director, Dwi Soetjipto, said to local reporters. He noted that the company`s export volume in 2007 stood at 500,000t but hoped the volume would increase to 1Mt in 2009.

Seotjipto said Semen Gresik was not able to meet demand for cement overseas in 2008 because domestic demand was also high and allthough domestic demand at home is expected to drop this year, Semen Gresik Group would maintain its production growth target at about six per cent of its 2008 production at 18.2Mt which was 8.6 per cent higher than that in 2007.

He said that the company`s cement sales in the January - November 2008 period was recorded at 16.186Mt, or an increase of 4.4 per cent compared with that in the corresponding period a year earlier.Currently, the real production capacity of Semen Gresik is 18Mta. It also controls 44 per cent of the cement market shares in the country.

"We will continue our expansion plan to increase the company`s current production capacity, Dwi Soetjipto said.The projects which will be carried out included the construction of a new factory in Pati, Central Java, and in South Sulawesi (Semen Tonasa) with a respective capacity of 2.5Mta.

He said Semen Gresik will also construct two power generating plants with a respective capacity of 35 megawatts.The projects, which, in total, need an investment of about US$1.3 billion are scheduled for completion in 2011 for the factories in South Sulawesi and in 2012 for the one in Pati.

"If the new factories and other facilities are completed, Semen Gresik`s production capacity is estimated to reach 23.4Mt in 2014.