Semen Gresik Tbk (SMGR) is ready to operate its new cement plant - Tuban IV at the end of 2011. The cement plant worth Rp3.5 trillion of investment will eventually produce 2.5 million cement per year.
President Director of PT Semen Gresik (Persero) Tbk Dwi Soetjipto said, with the operation the new cement plant - Tuban IV, the total production capacity of Semen Gresik’s cement plants located in Tuban of East Java will reach 90-10 million tons per year.
"The construction of a new cement plant in Tuban is aimed at increasing our production capacity," he said on Sunday (07/24/2011).
Dwi Soetjipto acknowledges that the execution of Tuban IV cement plant construction is carried out with the concept of governance lease. Semen Gresik as the owner of the project has formed a special team related to the execution of the plant construction.
When asked about the domestic cement consumption in relation to the operation of Tuban IV cement Plant, Dwi Soetjipto explains that the national consumption of cement in the country will increase. It is associated with increased development of infrastructure and property sectors.
"I predicted, demand for cement will continue to increase. Thus, many new investors like those coming from China are now seriously investing in Indonesia, especially in the cement industry sector," he says.
The growing number of new players in cement industry sector is predicted to make domestic cement production over-supply in 2015, Dwi Soetjipto further states. It is because, in that year, domestic cement demand will reach only for 56 million tons per year. All cement producers, not only Semen Gresik Group (SMGR), ramped up their production so that the national production capacity will swell to 70 million tons per year.
"The capacity of cement in the country is likely to over supply. It is because nowadays some foreign investors are beginning to glance at Indonesia as their home bases of cement industry," he says.