JAKARTA (Yosefardi) – State cement maker PT Semen Baturaja Tbk (SMBR) allocates capital expenditure (capex) of Rp725 billion for next year, to fund the construction of new cement mill in Ogan Komering Ulu, South Sumatra.
The project will cost Rp2.65 trillion to Rp2.9 trillion. The new cement mill, targeted to complete its construction by 2016, will have capacity of 1.85 million tons per year.
Currently, SMBR’s cement production reaches 2 million tons per year. The company had raised Rp1.3 trillion from its initial public offering (IPO).
It will also seek bank loan of Rp650 billion for funding new cement mill construction. While the company internal cash will contribute Rp1 trillion for the project. Cement demand in South Sumatra region is expected to reach 5.1 million tons this year.