State-owned Indonesian cement producers PT Semen Indonesia and PT Semen Kupang are planning to build a new cement factory in Kupang, in the eastern province of East Nusa Tenggara. The plant involves an investment of IDR2.5trn (US$185.19m) and will have a capacity of 1.5Mta, according to local press reports.

The Heads of Agreement (HoA) document was signed by both companies on Thursday. Groundbreaking for the new works is slated for 2016.

Agung Wiiharto, corporate secretary of Semen Indonesia, told 'Deal Street Asia', that the plan is part of the company's strategy to capture market share in the eastern part of the country. He said around 40 per cent of the new cement plant output will be exported.