Holcim looking to build new Indonesian cement plant
Holcim is reportedly planning to build a cement plant in Tuban, East Java in addition to the plant it is currently constructing to capture a further portion of Indonesia's huge long-term potential for cement demand.
Holcim is currently building a new plant in Tuban on the main island of Java. Slated to come on-stream in the first half of 2013, this important plant will have a capacity of 1.6Mta of cement.
With the long-term prospects for the Indonesian cement sector extremely bright, thanks to housing construction increases and government infrastructure projects, Holcim is looking to build another plant with a "similar" capacity to the new Tuban venture, according to Eamon Ginley, president director of Holcim Indonesia. The move would help the company, which is the third largest player on the Indonesian cment market, raise its capacity to 12Mta by 2015 from 8.3Mta at present.
Holcim currently operates two integrated plants, one in Narogong, west Java and the other Cilacap, central Java. The company also has a grinding plant at Banten, west Java.
Yesterday the company reported its nine-month net income rose to IDR911.2bn (US$95m) from IDR740.2bn the same period a year earlier.