Chinese companies to build cement plant in Indonesia

Two Chinese companies signed an agreement on Thursday to jointly invest in an Indonesian cement factory as part of investment cooperation measures agreed by the two countries in 2013.

State Development and Investment Corp. (SDIC) and Anhui Conch Cement Company (Conch) will fund the project of building production lines and relevant facilities of the factory located in West Papua Province.

After the construction is completed, the factory will have annual capacity of three million tonnes, serving for Indonesia's economic corridor and neighboring countries including Papua New Guinea.

SDIC and Conch will have a stake of 51 percent and 49 percent, respectively, of the factory, according to the agreement.

During Chinese President Xi Jinping's visit to Indonesia last October, cooperative investment agreements worth 20 billion U.S. dollars were inked by over 40 companies.