Indonesian cement production capacity will increase by 2.5 million tonnes to 68.5 million tonnes by the end of this year, amid strong domestic consumption in Southeast Asia's largest economy, an industry official said on Tuesday.
This will be a near 4 percent increase on current capacity of 66 million tonnes annually, said Urip Timuryono, chairman of the Indonesian Cement Association (ASI).
"Semen Tonasa is expanding its cement production capacity by 2.5 million annually with an additional investment of $400-450 million. It is scheduled to be completed before the end of this year," Urip told Reuters.
He said he was optimistic domestic cement consumption will grow in 2011 at 6.5 to 7 percent, driven by property development for housing, offices and malls in an economy seen growing at 6.4 percent.
Urip said Semen Gresik and Holcim were also expanding, with Semen Gresik investing $400-450 million in Tuban, East Java, to increase capacity by 2.5 million tonnes in 2012, and Holcim investing around $300 million to increase its capacity by 1.8 million tonnes by 2013-2014.
This would take cement production capacity to 72.8 million tonnes annually in 2013-2014.
The country's strong domestic consumption is leading to growing foreign investor interest, andChina National Building Material Co Ltd plans to invest $350 million to build a cement factory on Java island, local media have reported.
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