State-controlled cement maker Semen Gresik has opened its IDR3.18trn (US$332m) cement factory in Tuban, East Java, in the presence of Indonesia’s State Enterprises Minister Dahlan Iskan.

Dwi Soetjipto, the president director of Gresik, said the plant, which is Gresik’s fourth in Tuban, has a capacity of 3Mta.

“The Tuban IV plant officially started commercial production on July 1, 2012, even though its finishing mill and packer have  been operational since January 2012,” he said.

With its Tuban operation and a number of more plants scheduled to be built, including its fifth plant in Tonasa, South Sulawesi, Dahlan hopes that Gresik can become the biggest cement maker in Southeast Asia next year.

“We expect Semen Gresik to become the largest cement factory in Southeast Asia after the opening of its new factories, Tuban IV in East Java and Tonasa V in South Sulawesi,” Dahlan said.

He estimated Gresik’s cement production would reach 26Mta taking into account the combined output of 3Mta from the Tuban and Tonasa operations. That compares to 19.8Mt in 2011.

Gresik also has plans to build two new cement factories with a production capacity of 3Mta each, in 2013. One would be in Padang, West Sumatra and the other in Rembang, Central Java.

Commenting on the company's impressive expansion strategy, Dahlan said: “Semen Gresik is continuously expanding in anticipation of increasing demand at home and in boosting development."

The minister added that the government supported the company’s plan to expand overseas, particularly to Southeast Asian countries like Cambodia, Myanmar and Vietnam.”Semen Gresik is the one state-owned enterprise tasked with becoming a locomotive of economic growth, our champion for international competition, due to its excellent performance.”

Dwi Soetjipto, said the company aimed to sell 19Mta of cement, an increase of 15.3 per cent compared with last year.

Published under Cement News