Replace Heavy Equipment, Indocement Need Rp600 billion

Initiative PT Indocement Tunggal Tbk (INTP) budgeted capital expenditure (capex) for Rp550, 600 billion in 2010. Capex is the plan used for the replacement of heavy equipment (replacement) that funds will be taken entirely from the company treasury.

This was revealed by Executive Director, Chief Financial Officer Christian Kartawijaya ITMG as public exposure in Investor Summit, at the Ritz-Carlton Pacific Place, Jakarta, Wednesday (2/12/2009).

"Capex is used for replacement, equipment, additional mixers, heavy equipment, the heavy equipment that is due to be replaced," he said.

Whereas in 2009, corporate capex budgeted for only Rp70 billion. Not only that, the company is also in the process of completing two cement grinding unit (cement mill) in Cirebon is scheduled to be completed in the quarter I-2010.

With this cement pengilingan, total company production capacity will be 2.4 million tons per year per unit is 1.2 million tons. "Investment USD35 per ton," he said.

In addition, demand for cement companies is still considered to grow. Therefore, it plans to do two projects that add a new cement mill in Citeurep which will start mid next year.

The initial stage of cement mill building is approximately 200 billion. "So the total capex for 2010 will be approximately Rp760 billion," he said.

In addition, if the demand for cement remains strong, it will add a new plant with a capacity of 3-4 million tons per year. "We will add 3-4 million tons. The capacity of 2-3 million tons will be ready in 2013," he explained.

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