Indocement to expand capacity

Indocement Tunggal Prakarsa (INTP IJ, BUY, TP: IDR26,000) intends to increase production capacity by planning to build two green field factories that will have production capacity of 1.5 – 2.5mn tonnes per annum. The investment value will be USD225-500mn per factory and it will be build in Pati, Central Java on 2016 and Langkat, North Sumatera on 2018. Meanwhile, INTP also plans to build a brown field factory in Citeureup, West Java with 4.4mn tonnes of capacity and investment value of IDR5.5-6.5trn.