State cement maker Semen Indonesia (SMGR) mulls to acquire local cement producers. It is keen to acquire cement mill with the installed capacity of over 60%. There are five local cement mills with high production utilization. The cement industry is said to enter into consolidation as many local cement producers have bigger debts rather than their revenues and profits. While cement producers with low production utilization need to seek new investors for their survivals on cement business. High leverage levels will lead them into trouble as they could not make new loans. At 10.47 am Jakarta time, SMGR was traded flat at Rp9,400 per share.
