Tuesday, December 27, 2005

Lafarge rebuild Aceh cement plant in 2006

French construction giant Lafarge SA, the world's largest cement supplier, is planning to rebuild the Aceh cement factory damaged by the tsunami next year with investment up to US$90 million.
Batara, communication manager of PT Semen Andalas Indonesia, Lafarge subsidiary that operate the plant, said to Antara yesterday that the company is in the process to prepare the bidding that would start early January 2006 to be followed by construction the next month.
The plant will have installed capacity of 1.3 million tones per year, most of it to meet the demand from construction activities in Aceh and other parts of Indonesia.
Lafarge supplies cement to Aceh reconstruction project from its plant in Langkawi, Malaysia. In the second half of 2005, demand for cement in Aceh jumped to 417,000 tones which is equal to total consumption in 2004.
As Aceh reconstruction is gearing up in higher speed next year, cement consumption would significantly increase as well.
Lafarge new plant will be operational by mid-2007 and is expected to help economic recovery in the area. Indeed it is a good business both for Aceh people and Lafarge. Imagine that half a million houses should be built in the next few years plus the construction of public infrastructures. They need a lot of cements.




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