Companies

CNBM to invest $400m in Indonesia

(Agencies)
Updated: 2011-06-01 15:04

JAKARTA - China National Building Material Co Ltd (CNBM) plans to invest $400 million to build a cement factory and glassworks in the next two years in Indonesia's main Java island, a newspaper reported on Wednesday.

"We are committed to build a cement factory in Grobogan and glassworks in Tangerang, to cooperate with local firms, with each investment being $350 million and $50 million," Bisnis Indonesia quoted Ma Mingliang, the head of the firm's cement division, as saying.

Related readings:  Big players cement their lead as demand increases  Guangdong sells more cement abroad  MIIT announces entry criteria for cement industry  Reports: Construction giant CNBM shows 'green' growth

The factory will have a cement production capacity of 16,000 tons per day. Indonesia is looking to overhaul dilapidated infrastructure and domestic cement firms are also ramping up output. Indonesia's largest cement maker Semen Gresik aims to boost output 50 percent by 2015.

Foreign direct investment from Asian firms has picked up this year in Southeast Asia's biggest economy, thanks to political stability and strong economic growth, though there have been few Chinese investments so far.

Chinese premier Wen Jiabao visited Indonesia in April in an effort to improve trade and investment ties.