In view of the continuous economic growth in Indonesia, the Board of Directors and the Executive Committee of Holcim have decided to build a new cement plant with an annual capacity of 1.6Mt in the eastern part of the main island of Java, near the city of Tuban.
The investment costs will amount to around US$450m, the company said in a statement. The new plant, with open sea loading and unloading facilities, will go into service in the first half of 2013, providing all necessary local licenses are granted in due time. This investment will allow Holcim Indonesia to keep up with the expected market growth. The new plant will ideally complement the existing production and distribution network of two cement plants and a 8.6Mt grinding station and activities in the areas of aggregates and ready-mix concrete.
As Holcim Indonesia’s existing cement plants are situated in West and Central Java, the new plant will help to further optimise logistics costs and open up markets cost-efficiently in East Java, Kalimantan and the eastern islands of Indonesia.