Strategic planning is being designed by the management of PT Semen Gresik (Persero) Tbk. While constructing the two new cement plants, Tuban IV in Tuban and Tonasa in South Sulawesi, the company is planning to build another new cement plant, Indarung VI of PT Semen Padang, in West Sumatera.
“Maybe, we are going to discuss and plan this issue in more specific details in the middle of 2010,” said Semen Gresik President Director, Dwi Soetjipto, during a fast-breaking gathering with a number of mass media top leaders in Surabaya on Wednesday (September 2nd, 2009). The Indarung VI cement plant is located in West Sumatera and included in business area of PT Semen Padang. Both Semen Padang and Semen Tonasa are included in Semen Gresik Group.
“Of course, the construction of Indarung VI will depend on the decision and approval of the Annual General Meeting of Shareholders (AGMS),” Dwi added. One certain thing, Dwi says, is that the management of Semen Gresik Group is currently concentrating on the completion of Tuban IV and Tonasa cement plant construction. Beside, this state enterprise is also constructing two units of power generating plants in South Sulawesi. The budget required to construct both the 2 power plants and 2 cement plants will reach more than 10 trillion.
Dwi explains that, if the planning of Indarung VI plant construction is well-done in the middle of 2010, a new cement plant of Semen Gresik Group will certainly be constructed in Semen Padang business area in 2011. At least, Rp3.5 trillion is required to construct the new cement plant with a total production capacity of 2.5 million ton per year.
Up to 2007, he said, the total production capacity of all plants owned by Semen Gresik Group reached 16.7 million tons. And in 2011, the total production capacity of all cement plants under Semen Gresik Group is predicted to reach 20 million ton per year. “We must be able to keep our 45% market share of the national cement market. If possible, it must be improved,” he said.
The total production capacity of 20 million ton per year as mentioned above can be achieved after the construction of the two cement plants, Tuban IV with its total production capacity of 2.5 million ton per year and Tonasa with the same production capacity, is completed. The deadline of Tuban IV plant construction is 2012, and Tonasa is in 2011.
“Beside, we also keep monitoring as well as counting cement demand rate from year to year. We admitted that cement demand in the first half year of 2009 declined to 7%, compared to the same period of the previous year. “However, we are very optimistic that cement demand will increase again in the near future,” he said.
Concerning Semen Gresik plan to construct its new cement plant in Pati, Dwi said, the opportunity is still widely open. Let alone, both cement market is very potential and raw material of cement is also abundant there. “We must admit that we have faced various problems, including social and environmental problems as well as too many property speculators.
Therefore, Semen Gresik management is implementing its new strategy related to the construction plan of a new cement plant in Pati. What is it? “We have been transparent since the beginning,” he said. The options to choose the location of the new cement plant has been widely open. “It is not like that we are not sending our soldiers to a battle field right before daybreak,” he said.
In spite of the fact that the new cement plant construction in Pati is still facing several obstacles, Dwi states, it will not affect the production capacity and marketing as well as sales of Semen Gresik. “Our sales volume in August 2009 reached 927,027 tons. It was the highest sales volume since Semen Gresik was founded,” Dwi Soetjipto said.