Semen Gresik Eyes New Name, Higher Profile
ID/Agustiyanti & Efendi
State Enterprises Minister Dahlan Iskan said Semen Gresik, the country’s biggest cement maker, would change its name to Semen Indonesia in an effort to raise its international profile.
The change must be approved by shareholders, which could happen in October or November, the minister said on Tuesday. After the change is official, Dwi Soetjipto, the president director of Semen Gresik, will become chief executive of Semen Indonesia.
Dahlan said President Susilo Bambang Yudhoyono had already signed off on the new name.
Semen Indonesia would group several cement makers, including Semen Padang, Semen Tonasa and Semen Rembang.
Dwi said the company was working to finalize the brand change, which he hoped would lift its international image and name recognition. All of the operational details that go along with the change should take about a year to complete, he added, without providing details.
Separately, Dahlan said construction on a new plant for Semen Rembang would start this year. The plant will be located in Gunem subdistrict, in Central Java’s Rembang district.
Construction is estimated to cost Rp 3.5 trillion ($371 million) and the plant will have an annual capacity of two million to three million tons when completed.
Semen Gresik is currently building a cement plant in Padang, West Sumatra, and one in Tuban, East Java.
The company is also looking into acquiring stakes in cement makers in Malaysia, Myanmar, Vietnam and Thailand as it seeks to expand its reach in the region. One possible target is said to be Cement Industries of Malaysia.
If plant construction and the acquisitions move ahead, Semen Gresik said its production capacity could increase to 26.5 million tons per year starting this year.
Semen Gresik reported a 12 percent increase in net income in the first half of this year as it took advantage of rising cement sales in Indonesia from a building boom.
Net income rose to Rp 2.1 trillion in the January-June period from Rp 1.87 trillion in the same six months last year, and revenue increased 14 percent to Rp 8.66 trillion, the company said last week.
Semen Gresik sold 10.3 million metric tons of cement in the first half this year, up 12 percent from the same period in 2011, the company reported last week.
Shares of Semen Gresik fell 2.3 percent to Rp 12,650 on the Indonesia stock Exchange on Wednesday. The shares have increased 10 percent this year.
Indonesia is forecast to use 55 million tons of cement by 2015 and 100 million tons by 2020. In preparation for the rising demand, local cement companies aim to boost their combined production capacity to 80.39 million tons by 2015 compared to 56.82 million tons in 2011.