JAKARTA (Yosefardi) – Cement maker PT Indocement Tunggal Prakarsa Tbk (INTP) had on July 15, 2013, signed onshore contract for construction and services for new mill (P-14) project with PT Sinoma Engineering Indonesia. The project is located in Citeureup, Bogor regency.
The company earlier said it allocates capital expenditure (capex) of Rp3.07 trillion for this year, used to fund the construction of cement mill and brownfield.
Along with the additional capacity of 1.9 million tons that will come in fourth quarter of this year from inauguration of new grinding mill in Citeureup, the company expects to book around 8% growth in sales volume this year.
The sales volume will start picking up in 2015 after the completion of 4.4 million tons new mill construction in Citeureup, West Java. The construction of 4.4 million tons mill itself costs around US$550-600 million, which spent over three years of construction.
On the other hand, two other new mills in Rembang, Central Java and somewhere in Sumatra with respective capacity of 2.5 million tons per year are still completing administrative works prior start constructing.
Currently, Indocement holds 31% market share in the country. Semen Gresik (SMGR) holds 43.7% while Holcim Indonesia (SMCB) 14.4%.
At 2.26 pm Jakarta time, INTP gained 0.45% to Rp22,450 per share, SMGR fell 0.66% to Rp14,950 while SMCB was flat at Rp2,675.