Indonesian president set to inaugurate new Gresik plant

Indonesia President Susilo Bambang Yudhoyono is scheduled to inaugurate? PT Semen Tonasa's V cement plant in South Sulawesi, on August 31, 2012.

President Director of PT Semen Tonasa Sattar Bata told local media that the construction of the 2.5Mta has entered its final stages. "All the physical work had been completed in June, while the finishing touches and inaugural preparations will be made next month," he said.? Investment in the plant is said to have reached IDR6.5trn.

"The plant has now even already producing cement, and is expected to meet the need for the building material in East Indonesia (KTI)," Mr Bata added.

The new works will increase Tonasa's capacity to 6.4Mta, including 4Mt from the production of Tonasa I, II, III and IV.

Mr Bata also said there is a prospect to build other plants in KTI, considering large and increasing need for cement. "The total need for cement in KTI has reached 12Mta, with Tonasa meeting 6.5Mt, 1.8Mta from PT Semen Bosowa, and the rest from other companies, so that there is a prospect to build new plants to meet the needs and demands from the people in KTI," Sattar Bata said.

Semen Tonasa also plans to build packing plants in eight locations with four in Papua (namely Jayapura, Timika, Sorong and Manokwar) each with a capacity of 300,000tpa and a total? investment of IDR140bn.? The other locations are Samarinda, Gorontalo, Palu and Tarakan.? These packing plants will facilitate distribution to targeted marketing areas and minimise transport costs.

Sattar Bata also added that production will also be boosted by revamping Tonasa III and IV and by 2015 it is expected total capacity to reach 8Mta.