PT Semen Gresik has lost market share in the first half of this year due to production growth being slower than increases in Indonesian consumption.
In the first half of the year, state-owned Gresik sold 10.3Mt of cement, up 12 per cent YoY, and accounting for 39.7 per cent of Indonesia’s total cement sales. However, in the first half of last year, Gresik had a 40.7 per cent market share with sales of 9.2Mt. Total domestic cement consumption, meanwhile, increased 15 per cent to 25.8Mt, according to data from the Indonesian Cement Association.
Meanwhile, sales of rival PT Indocement Tunggal Prakarsa rose 22 per cent to 8.5Mt in 1H12, claiming a 33 per cent market share compared with 31 per cent in the same period of 2011.
“Our market share shrank a little bit because our production growth was slower than the national consumption growth,” Agung Wiharto, Semen Gresik’s corporate secretary, told Investor Daily on Thursday.
However, the company is in the process of boosting production to 22Mt by the end of this year, up from 19.8Mt last year. Agung said a new plant in Tuban, East Java, would begin production this month, adding 1.5Mta of capacity to the company’s total.