JAKARTA (Yosefardi) – Cement producer PT Indocement Tunggal Prakarsa Tbk (INTP) plans to invest US$1-1.5 billion until 2018, to fund the new cement mills establishment projects in Central Java and North Sumatra.
Each cement mill will have production capacity of 2.5 million tons per year. The construction of new cement mills will start next year and are expected to complete by 2018.
The projects will be funded by the company’s internal cash as at June 2014, INTP has cash and cash equivalent of Rp13.7 trillion. Currently, INTP’s production capacity totals 20.5 million tons per year.
INTP, the second largest cement producer, booked net profit of Rp2.5 trillion in the first half of 2014, representing net profit margin (NPM) of 26.4%.