JAKARTA (Yosefardi) – State-owned cement producer PT Semen Baturaja Tbk (SMBR) is now tendering the construction project for its new mill, Baturaja II plant, which costs Rp2.5 trillion, Bisnis Indonesia reported this morning.
Pamudji Rhardjo, SMBR’s president director, said the signing of contract for new mill construction with capacity of 1.85 million tons per year is scheduled for end of November this year.
The company earlier said it is optimistic to boost its production capacity by 28% to 1.65 million tons of cement by end of this year, from previously 1.25 million tons.
The company has completed construction of cement mill with capacity of 750,000 tons per year. This cement mill will commence its commercial operation next month.
SMBR also plans to build new cement mill and Baturaja 2 plant/factory, to boost its production capacity to 3.85 million tons by 2016.
Baturaja 2 cement plant project costs around Rp2.5 trillion, funded by internal cash (Rp1 trillion), IPO proceeds (Rp1 trillion), and bank loan (Rp500 billion). SMBR targets net profit to grow by 27% to Rp380 billion this year while sales to grow by 19.2% to Rp1.3 trillion.