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PT Semen Bosowa builds USD 310 million clinker plant
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Saturday, 24 Nov 2012
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The Jakarta Post reported that cement producer PT Semen Bosowa Maros officially began construction on a new clinker plant in South Sulawesi as part of the expansion program. The new plant, which is called Kiln Plant Line 2, is located in Maros regency of South Sulawesi and will be built with an investment of about USD 310 million. It will have a production capacity of 5.2 million tonnes of clinker a year, far larger than the existing plant that has an annual capacity of 2.5 million tonnes.

Semen Bosowa Maros, the unit of diversified business group Bosowa Corporation, expects to complete the plant's construction before the end of 2014.

Higher clinker production is expected to help the company increase its cement production to meet the country's growing cement demands.

Mr Erwin Aksa CEO of Bosowa Corporation said that "As of now, our cement production is 3.2 million tonnes per year, only about 6% of the national demand."

The total production comes from Bosowa Corporation's two cement units, Semen Bosowa Maros with 2.2 million tonnes and Batam based PT Semen Bosowa Indonesia with 1 million tonnes.

Mr Erwin said that the group expected to have production capacity of around 10 million tonnes of cement in 2015 or about 20% of the country's estimated cement demands of around 53 million tonnes.

According to figures from the Indonesian Cement Association, national cement consumption reached 44.64 million tonnes as of the end of October 2012, a 14.5% YoY increase from the 38.98 million tonnes as of the end of October 2011.

Clinker produced by Kiln Plant Line 2 will be delivered to Bosowa's grinding plants. Semen Bosowa Maros is now developing new grinding plants in Banyuwangi in East Java, Cilegon in Banten, Sorong in West Pa pua and Amurang in North Sulawesi.

The Banyuwangi grinding plant will have a production capacity of 1.8 million tonnes per year with investment reaching IDR 1 trillion, is scheduled to be ready for operations before the end of 2013.

Semen Bosowa Maros will also spend IDR 1 trillion on its Cilegon grinding plant, which will have an annual production capacity of 1.8 million tonnes after its completion in 2014. The company will also spend IDR 500,000 billion each to develop Sorong and Amurang grinding plants, which will have production capacity of 700,000 tonnes per year and are expected to start operations in 2014.

Source - The Jakarta Post

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