Aug 24, 2010

Indocement sets 10%-13% sales growth

Indonesia's second largest cement manufacturer PT Indocement Tunggal Prakarsa Tbk (INTP) is eyeing 10%-13% growth in sales volume this year from 13.6 million tons last year.
The target is above cement industry estimated to grow 7%-8% this year from 38.2 million tons a year earlier.
Indocement Finance Director Christian Kartawijaya said the company's production capacity will baloon to 18.6 million tons of cement by the end of 2010 due 1.5 million tons additional capacity from Cirebon-based cement mills.
With higher production volume, Indocement expects to grab additional market share to 33%-34% this year from 30.2% last year.
Christian said the company hasn't decided to rise cement selling price due it enables to gain cost efficiency.
2 million tons of cement mill in Citereup, West Java, is expected to be built in the second half of 2011 or end of 2011. The company will use US$70 million internal cash to build the mill.

Disclosure: No position at the stock mentioned above.

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