BANYUWANGI: Bosowa Corporation has appointed PT Pembangunan Perumahan (Persero) Tbk to immediately realize the construction of Grinding Plant in Banyuwangi around IDR800 billion.
The existence of the grinding plant will spur the increase of Bosowa cement production to 5.3 million tons before 2014.
Erwin Aksa, CEO of Bosowa, said this time the company does not use foreign contractors just like what had been done in the construction of cement plant stage II Bosowa Maros, done Halla Energy & Environment, a South Korean-based company. Bosowa’s grinding plant will be built by PT PP in Banyuwangi.
Construction and property of grinding plant and the build-up of clinker is estimated to cost IDR800 billion.
"Some sources of funds from the equity firm partly involve bank," said Erwin on the ground breaking of Bosowa’s Grinding Plant.
Approximately IDR200 billion of project value will be used for the procurement of imported raw materials. The remaining IDR600 will be used for the procurement of local raw materials.
Based on the plan, the project will be completed within two years. "Hopefully, it can be built in 1 year only, so that in 2013, the Bosowa cement factory in Banyuwangi can start the operation."
According to Erwin, Bosowa cement plant expansion in Banyuwangi is part of the company's plan to boost production capacity. (Bsi)
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