PT SEMEN GRESIK TO BUILD NEW PLANT IN TUBAN

Surabaya, Aug 5 (ANTARA) - Cement maker PT Semen Gresik is to invest Rp3.5 trillion in a new plant to be constructed in Tuban, East Java, the company's chief said.

"According to plan, the laying of the first corner stone will be done later this month," PT Semen Gresik president director Dwi Soetjipto said here on Tuesday.

With the new plant, the company's production capacity was expected to increase to 2.5 million tons a year.

"We expect to be able to remain productive in Tuban for up to 50 years," he said after a meeting with East Java Governor Soekarwo at the latter's office.

Semen Gresik which was set up 50 years ago was also planning to build a new plant in Sulawesi with a production capacity of 2.5 million tons a year, he said.

Soetjipto said the company's profit in 2008 increased by 3.4 percent from the figure in 2007. "We certainly are grateful because it happened while the national economy is being affected by the global crisis and after our sales had once dropped to minus seven percent," he said.

Semen Gresik was now employing around 4,000 people. The new plant in Tuban would absorb up to 500 workers.

Regarding the Tuban people's objections to the construction of Semen Gresik's new plant , Soetjipto said the commpany's management would settle the problem.

"People in Tuban need not worry because we are also conmmitted to preserving the environment. We will treat depleted mines in such a way that the local environment remains sustainable," he said.