Semen Indonesia plans to set up more cement plants

Indonesia's state-run cement maker 7818 Semen Indonesia has announced it will carry out an expansion to the west and build an additional cement factory in Aceh to meet higher demand in the province.

This will come after the company's plan to set up a cement plant in Papua. The company is planning to set up a cement plant in Kalimantan and Sulawesi, aside from Aceh, its finance director is reported as saying.

The company chose to set up another plant in Aceh to meet higher cement demand due to the building of the Trans-Sumatra Highway. The director said construction on the Aceh plant may begin in 2015, and Semen Indonesia will need to invest a similar amount to the US$352 million (€275.13 million) that was invested in the Indarung VI plant, for the new plants.

Each plant will have an annual production capacity of as much as 3 million tonnes.