Semen Gresik to increase cement exports in 2009

Surabaya, E Java (ANTARA News) - State-owned cement maker PT Semen Gresik is planning to increase its export volume despite the economic crisis in 2009, the company`s president director, Dwi Soetjipto, said. 

He said the company`s export volume in 2007 stood at 500,000 tons but hoped the volume would increase to one million tons in 2009. 

"This year the export volume is predicted to account for only five percent of overall sales while demand abroad is actually higher," he said. 

Seotjipto said Semen Gresik was not able to meet demand for cement overseas because domestic demand was also high. 

Though domestic demand at home is expected to drop this year, Semen Gresik Group would maintain its production growth target at about six percent of its 2008 production at 18.2 million tons. 

The 2008 production at 18.2 million tons is 8.6 percent higher than that in 2007. 

He said that the company`s cement sales in the January - November 2008 period was recorded at 16.186 million tons, or an increase of 4.4 percent compared with that in the corresponding period a year earlier. 

Currently, the real production capacity of Semen Gresik is 18 million tons annually. It controls 44 percent of the cement market shares in the country. 

"We will continue our expansion plan to increase the company`s current production capacity, Dwi Soetjipto said. 

The projects which will be carried out included the construction of a new factory in Pati, Central Java, and in South Sulawesi (Semen Tonasa) with a respective capacity of 2.5 million tons per annum. 

He said Semen Gresik will also construct two power generating plants with a respective capacity of 35 megawatts. 

The projects, which need an investment of about US$1.3 billion are scheduled for completion in 2011 for the factories in South Sulawesi and in 2012 for the one in Pati. 

"If the new factories and other facilities have been completed, Semen Gresik`s production capacity is estimated to reach 23.4 million tons in 2014. We predict that cement demand at home will increase in a few years to come," he said.