State-owned Indonesian cement producer PT Semen Gresik achieved record production last year and targets further increases this year, according to a senior member of the company.
Cement production rose 18 per cent in 2012 to 22.6Mt and revenue is expected to hit IDR19trn (US$2bn). “We hit a record in terms of production,” said the company’s president director Dwi Soetjipto in Gresik early this week.
Revenue reached IDR18.43trn in the first nine months of 2012 and net income was IDR4.55trn. This is more than the total achieved by the company in 2011 when it achieved revenue of IDR16.4trn and net income of IDR3.9trn.
This year total cement production is expected to grow by 25 per cent to 28.3Mt, aided by the company’s most recent acquisition of Thang Long Cement in Vietnam on December 18. Production from this plant is expected to increase from 1.8Mta to 2.3Mta. That will help the company meet its 2013 production target of over 28Mt.
Earlier this week the company had set aside US$400m for capital expenditure which will in part be used to finance the construction of new cement plants in Rembang, Central Java and Padang, West Sumatra.
