Semen Gresik forecasts 17% rise in revenue, Indonesia

Semen Gresik expects revenue rising 17 per cent this year from an estimated 12 per cent in 2011, and also expects to raise financing this year for two new projects. .

According to according to chief executive, Dwi Soetjipto, the company forecasts sales of 23Mt from the 19.8Mt recorded in 2011, Dow Jones reported. Profits are expected to rise by 10 per cent on the back of increased sales and improved efficiency.

The construction of the company’s two new cement plants in Tuban, East Java, and in Pangkep, South Sulawesi, are soon to be completed.

The company also recently stated that it may issue bonds valued at US$540m in the second half of this year to build two plants, one in Central Java and the other in Sumatra, according to Finance director Ahyanizzama. He said the company is also considering medium term notes (MTN) instead of bonds. The bond or MTN would fund up to around 50 per cent of the total investment, he said.