Jun 29, 2012

Semen Gresik Makes Inroads in Myanmar

Semen Gresik, the country’s largest cement maker, plans to build a cement plant in Myanmar at an estimated cost of Rp 1.5 trillion ($159 million) next year, its president director said.

Dwi Soetjipto said on Tuesday that the company expected construction in Myanmar to increase significantly in the coming years as foreign investment started pouring into the country.

“We will set up a joint venture with a local partner to build a factory with a capacity of 600,000 to 1 million tons a year,” he told reporters in Jakarta.

Semen Gresik also plans to acquire a cement maker in Vietnam next year after canceling its plan to buy a Malaysian cement maker this year.

Dwi said the company has allocated up to $500 million for its overseas expansion.

Semen Gresik joins other state enterprises in seeking business opportunities abroad recently.

Pertamina, the state oil and gas company, said it was in finalizing its plan to buy an oil and gas block in Iraq as part of its move to boost shrinking oil production. State-controlled construction company Wijaya Karya has already been involved in projects in the Persian Gulf nation.

Semen Gresik is also considering selling $300 million worth of dollar-denominated bonds next year. The notes would be sold in stages, said Ahyanizzaman, the company’s finance director.

The bond sale would be part of a plan help finance the company’s cement plants in Java and Sumatra. The company plans to build two cement plants at a total combined cost of Rp 6.9 trillion.

Shares of Semen Gresik rose 0.4 percent to Rp 11,350 on the Indonesia Stock Exchange on Wednesday.

Source: Jakarta Globe