Lafarge to stop importing cement next year, Indonesia

Lafarge to stop importing cement next year, Indonesia
Published: 15 October 2008

Lafarge Cement, a French cement producer controlling a 99% stake in PT Semen Andalas Indonesia, is going to stop importing 1.1Mta of cement starting from 2009.

The company decides to stop import following the completion of its plant restructuring project worth US$240m in Nanggroe Aceh Darussalam (NAD) next year. The expansion is estimated to boost the company’s total annual cement production capacity to 1.6Mt.

"Semen Andalas, currently owned by LafargeCement, will start its production activities in the second semester of 2009. Once the plant starts production, imports will be eliminated," said Director of Downstream Chemical Industries at the Department of Industry Tony Tanduk yesterday.

Previously, Semen Andalas plant could only produce 50,000t of cement per month or 600,000 tons per year, thus, creating a necessity to import cement from several countries.

Tony disclosed the US$240m fund was used to repair plant construction, build port and terminal, and develop coal power plant.

Senior Vice President for Commercial & Logistics at Lafarge Cement Haryanto Chandra confirmed the restructuring and infrastructure development had been running. He expected the company could start production by mid-2009.

"There are obstacles, but we are optimistic the plant will be able to start production soon to meet domestic needs."