JAKARTA (Yosefardi) – State cement maker PT Semen Indonesia Tbk (SMGR) plans to invest Rp20 trillion up to 2016, inline with growing cement demand in the country, Investor Daily reported this morning.
Ahyanizzaman, SMGR’s finance director, said the company plans to boost cement production capacity to 40 million tons by 2017 from current 30 million tons. National cement demand grows by average 5 million tons per year.
SMGR will start build new cement mill in Rembang, Central Java, in September or October this year, then build new cement mill in Indarung, Sumatra by 2015.
The company said it plans to raise loan from Export Credit Agency (ECA) by early next year and also loan from banks. Internal cash will fund 30% of total investment.
SMGR also plans to build a packaging plant which costs Rp1 trillion. It also plans to invest US$200 million in Myanmar, through acquiring such a cement company. The acquisition is expected to be realized next year. The targeted company has capacity of 300,000 tons per year. After acquisition, the capacity of cement company in Myanmar will be boost to 1.5 million tons per year.
SMGR expects revenues and net profit to grow by 25% and 10% respectively this year. It expects to book revenues of Rp11 trillion in first half of this year, compared to Rp8.66 trillion in the same period of 2012.
Meanwhile, Thang Long Cement JCS, subsidiary of SMGR, plans to refinance its debt worth US$80-100 million, funded by loan from syndicated banks, a combine of foreign an local banks. SMGR acquired 70% stake in Thang Long by end of 2012 for a total value of US$157 million.