Indonesia: PT Cemindo Gemilang is due to start building a US$450m cement plant in Banten province following a groundbreaking ceremony on 11 September 2013. The 4Mt/yr plant will be situated on a 500 hectare plot in Bayah, Lebak regency. It is due to start commercial operations in the third quarter of 2015.
The subsidiary of oil palm plantation, mining and property business Ganda Group intends to spend a further US$150m on developing related infrastructure for the plant including a port and a power network. Cemindo will finance the project with external and internal funds. The majority of the funding, representing 70% of total investment, will be obtained from a syndicated loan led by the state-owned Bank Negara Indonesia.
Cemindo sells cement under the Semen Merah Putih brand in 20 provinces in Java, Kalimantan and Sumatra. In 2012 it acquired a majority stake in Vietnamese cement producer Chinfon Cement Corporation for US$250m.