Semen Indonesia targets over 40Mta of capacity in 2017

Semen Indonesia targets over 40Mta of capacity over the next three years, as it continues to increase domestic capacity and seeks to expand into other Asian countries and beyond.

This year the company targets capacity of 31.8Mt this year, according to its president  Dwi Soetjipto.

By 2016 Semen Indonesia will further expand its production capacity to 37.8Mt with new production facilities in West Sumatra and Central Java, Indonesia, Dwi added.

Meanwhile, there will be an increase of 2Mta in the production capacity of the existing factories and 1.2Mta from its factory to be built in Myanmar. "Altogether the capacity could rise to 41Mt in 2017," Dwi told Antara News.

He said with investment assets of IDR46.5trn, Semen Indonesia is ready to expand to various countries in Asia including Bangladesh and Sri Lanka, even Africa.

"Africa is a growing region and potential market for cement," he said.

Semen Indonesia has already established a presence in Vietnam by acquiring a 70 per cent stake in Thang Long Cement. It is also planning to strengthen its regional presence by acquiring a cement company in Myanmar, the process of which is expected to be completed in July. In Bangladesh, the company is reported to be closing in on a deal to acquire a local factory, a purchase which it hopes to complete by the end of this year or in early 2015.