Semen Padang's Market Share Declines

Padang, W Sumatra (Antara Bali)- Cement producer  PT Semen Padang  recorded a decline in market share in Sumatra amid an increase in demand for cement in the country.

Munadi Arifin , the president of the subsidiary of state cement producer PT Semen Gresik, attributed the decline to limited production capacity of the West Sumatra based company.

Other producers, which still have idle capacity gain more from the growing demand for cement  in the country as they easily increase production, Munadi said.

He said currently the production capacity of  PT Semen Padang, which has five units of factories,  is only  6.5 million tons per year.

"However, one of the units ,  Indarung I has stopped operation since 1999," he said.

Semen Padang has recorded a decline in market share since 2006 when the company had a market share of 49.8 percent , down to 49.08 percent in 2007 and to 43 percent in 2012, he said.

"The decline came amid growing consumption of cement in the country," he added.          

The Indonesian Cement Association (ASI) predicted the country's cement association would reach 54 million tons in 2012, or an increase of 12 percent from last year.(*/dwa)