Feb 7, 2011

Semen Gresik sets above 10% growth

The state-owned cement producer PT Semen Gresik Tbk (SMGR) is eyeing above 10% growth both in revenue and net income this year. The growth is in line with additional production of 1.5 million tons of cement.
President Director of Semen Gresik Dwi Sutjipto said the company also targets 20.1 million tons-20.2 million tons of cement sales volume as it will have 1.5 million tons of additional cement production.
"We expect our market share to enlarge to 45% this year from 43% last year," he said.
Semen Gresik is estimated to post a flat revenue last year at the level of Rp13.7 trillion, while net income may increase 8%-10% to Rp3.56 trillion-Rp3.63 trillion from Rp3.3 trillion in 2009. Sales volume is estimated to increase below 3% last year from 18.3 million tons in 2009.
Semen Gresik plans to reach a 30 million tons of sales volume. To reach the target, Semen Gresik aim to build cement plant in Sumatra as well as a new plant in Java with 2.5 million tons of production capacity in 2012.
Di Padang, Sumatra, Semen Gresik will build cement plant with 2.5 million-3 million tons capacity by end of this year. The investment for two plants reaches US$700 million.

Disclosure: No position at the stock mentioned above.

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