PT Holcim Indonesia plans to invest US$400-500m in a new plant in Tuban, East Java, Reuters quoted a company director as saying on Tuesday.
The expansion, which will add 1.6Mta of capacity, is subject to controlling shareholder approval from the Swiss-based Holcim Group, said Jannus Hutapea, Holcim Indonesia’s legal and corporate affairs director.
“We already secured the area in Tuban for the factory,” said Mr Hutapea. “If we start the construction this year, it may take about 2.5 years for completion.
He added that the company is in preliminary talks with several local banks to help partly finance the project as well as using its internal cash.
Hutapea said that Holcim, which has US$2.1bn market capitalisation, wants to expand capacity to 8.3Mta from the current 7.9Mta.