JAKARTA. PT Cemindo Gemilang is constructing a new cement factory with a production capacity of 3.2 million tons a year in Lebak regency, Banten. The factory is expected to be operational in 2016, Aos Gumilar of Cemindo Gemilang said in Rangakasbitung, Banten, on Tuesday.

Gumilar said the factory, which will produce cement under the brand Merah Putih, was being built on a 500-hectare plot of land in Bayah subdistrict, Lebak.

With operational costs estimated at around Rp 6 trillion, the factory aimed to produce enough cement so that the country could be self-reliant, Gumilar said, adding that the country still imported about 1.5 million tons of cement a year.

"We are confident Merah Putih cement factory will contribute greatly to local economic development," Gumilar said as quoted by Antara news agency.

He said the cement would be supplied all over the country, including Sumatra, Kalimantan, Papua, Sulawesi, Maluku and Java.

In 1992, a Merah Putih cement factory was built in Vietnam with a production capacity of 4.5 million tons a year, Antara reported.

Editor: Barratut Taqiyyah Rafie