REPUBLIKA.CO.ID, PALEMBANG -- State-owned cement producer PT Semen Baturaja said it is set to hit its production target of 3.85 million tons in 2016 and meet the growing market demand in South Sumatra and neighboring regions.

The company which is based in Palembang , is seeking to expand its production capacity and build a number of new production facilities to meet the target, company's chief spokesman Sahadi said here on Thursday (8/1).

He said the company has optimize the capacity of its three factories, which are located in Palembang and Baturaja in South Sumatra and in Kota Panjang, Lampung.

Through capacity optimization the company could increase its production capacity to 2 million tons per year, he said.

If the expansion plan and the plan to build new factories could be implemented as scheduled, the production target of 3.6 million tons in 2016 could be achieved, he said.

He said as a state company, PT Semen Baturaja has the responsibility to guarantee cement supply in the country, especially in southern part of Sumatra -- South Sumatra, Jambi, Bengkulu, Lampung, and Bangka Belitung.

The production capacity at present is often not enough to meet the market demand, he said.

However, with the capacity optimization and construction of new factories the company should be able to meet the market demand even export part of its production, he said.

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