Factory II Operates, Semen Baturaja is More Optimistic in Cement Industry Competition

By : Hariyanto And Aldi Firhand. A | Sunday, September 03 2017 - 21:19 IWST

Baturaja Cement
Baturaja Cement

INDUSTRY.co.id - Palembang - After the second factory is fully operational, PT Semen Baturaja (Persero) Tbk started entering a new phase in producing cement in Indonesia.

President Director of PT Semen Baturaja (Persero) Tbk, Rahmad Pribadi explains, the company is increasingly optimistic looking ahead in the competition of the cement industry. Because the new factory II has a production capacity of 1.85 million tons per year so that the company's production will increase by 92.5% or increased to 3.85 million tons when combined with the old factory production.

"We are optimistic, because the production will increase so that it can be used to meet the needs of cement in our home base, South Sumatra (Sumbagsel), currently continues to experience demand," he said on Thursday (8/31/2017).

Rahmad explained that the current growth of cement consumption is increasing in Sumbagsel, especially the prospect of new regions such as Jambi, sales growth reaches 54% and Bengkulu 29%.

In addition to the international event the Asian Games will also add significant sales due to the construction of Light Rail Transit (LRT) of Palembang.

"Of course, with the LRT project connecting Sultan Mahmud Badaruddin Airport (SMB) II to Jakabaring Sport City (JSC) to boost demand for cement at home base," he said.

So, he added, by the end of the year, sales target is optimistic that the company targets sales to reach 2,011,198 tons and revenue of Rp 1.83 trillion.

With an average growth of 23% and 20% compared to last year and EBITDA of Rp580 billion grew 38% compared to last year.

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