Semen Gresik (SMGR) has earmarked a total of
Rp 6.97 trillion ($752.76 million) to build new plants in Java and Sumatra, its
president director, Dwi Soetjipto said on Friday.
Dwi
said the company will seek long-term loans and make use of its assets as collateral
to seek loans to finance the construction of the new plants.
“We
will add the number of our plants to directly support the production process or
the core business of the company,” Dwi said.
Although
he said the new plants will be built in Java and Sumatra, he gave no further
details.
However,
Dwi also said the plan still had to receive the approval of shareholders, who
are due to hold their general assembly on June 26.
Semen
Gresik finance director Ahuanizzaman said earlier this month that the company
was also planning to build a cement plant in Burma where local industry could
only meet half of the national cement demand. The company said it estimated the
necessary investment to build the new plant would be around Rp 1 trillion for a
capacity of up to 600,000 tons a year.
The
company said construction may start next year and would be completed in three
years.
Semen
Gresik is also currently looking for a local partner to enter a joint venture
for the Burmese project.
Approximately
30 percent of the company’s financing needs for its expansion will be taken
from company funds while the rest will be covered by loans or global bonds,
executives said.
Ivan
Dasa Saputra
The
Jakarta Globe
Business & Investment Opportunities
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