SCG Indonesia on course to launch operations in 3Q15

SCG Indonesia, part of SCG Cement is set to launch operations of its first cement plant in Indonesia during the third quarter of the year.

The US$356m cement plant, situated in Sukabumi, West Java, is slated to produce as much as 1.8Mta, SCG Indonesia country director Nantapong Chantrakul told reporters in Jakarta on Tuesday.

The plant’s products, all of which will be sold locally, will enable SCG Indonesia’s cement operations to sustain itself without imported products from Thailand.

“More than 80 per cent of the machines have arrived and ready to be installed. We hope to finish the installation on time,” Chantrakul said.

Chantrakul noted the oversupply of cement — which lagged growth for the industry last year — is likely to continue this year, especially as most cement makers will be finishing their expansion plans this year.

As well as the Indonesian works, the capacity upgrade and expansion of SCG Cement plant in Cambodia is slated to be up and running this year. Production facilities in Myanmar and Laos will follow in 2016 and 2017, respectively.