Siam Cement Group (SCG) of Thailand has signed an agreement with China-based Anhui Conch Design & Research Institute for the construction of a greenfield plant in West Java, Indonesia.

The Chinese company, a subsidiary of the Anhui Conch Group, will supply machinery and equipment and provide engineering and construction services for the 1.8Mta plant to be constructed in Sukabumi.

The new cement works will be run by Siam Cement’s wholly-owned subsidiary PT Semen Jawa. With an investment totalling US$365m, plant construction is expected to begin this year and be completed by the third quarter of 2015, according to Semen Jawa president director Nantapong Chantrakul.