Jakarta  (ANTARA News) - The construction of Rembang cement factory, which will have a production capacity of 2-3 million tonnes per year, will start by the end of 2012, according to State-Owned Enterprises Minister Dahlan Iskan.

"The construction of Rembang cement factory will start by the end of this year, after the establishment of Holding Cement Indonesia," he said at Telekom Indonesia office here on Tuesday.

Rembang cement plant will be a subsidiary of PT Semen Gresik, he added.

Dahlan stated that PT Semen Gresik would change its name to PT Semen Indonesia by the end of this year.

"The name has been registered. President Susilo Bambang Yudhoyono has also agreed with the plan and is very happy about it," he said.

PT Semen Indonesia would later control Semen Padang, Semen Tonasa and Semen Rembang, Dahlan added.

Earlier, PT Semen Gresik President Director Dwi Sutjipto announced that the cement factory would be built in Tegaldowo village, Rembang district, Central Java, with an investment of around Rp3.5 trillion.

"The exploration process, which involves examining the content of lime and analysing environmental impact, is almost over," he said, adding that the factory would require 800 hectares of land for its operations 100 hectares for the main building and 700 hectares for storing raw materials.

The company is building three new cement factories in Padang, West Sumatra. It is also expanding its operations to Tuban, East Java, in order to increase its annual capacity to 3 million tonnes.
(Uu.O001/INE/KR-BSR/A014)

Editor: Priyambodo RH

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