Indonesia's Semen Gresik plans $400 mln capex in 2010

Reuters, Thu Nov 26, 2009 4:47am EST

JAKARTA, Nov 26 (Reuters) - Indonesia's largest cement producer PT Semen Gresik Tbk (SMGR.JK) plans capital expenditure of $400 million in 2010 to help cover the cost of building new factories, President Director Dwi Soetjipto said on Thursday.

Semen Gresik has planned capex of $1.2 billion for 2009-2014 to cover the construction of new factories in Java and Sulawesi, a power plant in Sulawesi, and to improve efficiency. The 2010 spending is included in that amount.

Soetjipto told reporters the firm would fund the 2010 capex from its internal cash.

Semen Gresik, which has a stock market value of $4.5 billion, expected production capacity to reach 18.5 million tonnes this year and aims to increase it to 19 million tonnes next year.

Shares in Semen Gresik ended down 1.39 percent on Thursday, while the broader market .JKSE fell 2.76 percent.

(Reporting by Andreas Ismar; Writing by Tyagita Silka; Editing by Sara Webb) ((tyagita.silka@thomsonreuters.com;

Reuters Messaging: tyagita.silka.thomsonreuters.com@reuters.net; +62 21 384 6364 ext 905))

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