Mar 21, 2012

Indonesia's largest cement producer plans to build factory in Myanmar

Indonesia's largest cement producer PT Semen Gresik Tbk is in talks with the foreign investment body of neighboring Myanmar to assess possibility of building a cement plant, the Jakarta Post reported on Monday.
"We are assessing possibilities to enter Myanmar. We see opportunities as Myanmar is in an infrastructure development process after recent political changes," Semen Gresik's Director for Business Development and Strategy Erizal Bakar told the daily.

Erizal noted that Myanmar's cement consumption reached 6 million tons per year. "However, that country's production capacity is only about 3 million tons. It imports cement from China, Thailand and India. Therefore, we see big opportunities to grow there," he said.

Moreover, he said, Myanmar cement consumption per capita stood at around 80 kilograms, still far below Indonesia's figure of about 160 kilograms per year and other Asian countries such as China at 1.2 tons per capita. "To my knowledge, no foreign companies have opened factories in Myanmar yet. We hear that several foreign companies want to enter the market and are planning to construct about six new cement plants. In the beginning, Semen Gresik plans to build one plant there," Erizal said.

Source: Xinhua