Holcim secures loan for new Indonesia plant

Holcim secures loan for new Indonesia plant
26 January 2012

Holcim Indonesia has secured a US$150m to be used to expand its production capacity in Indonesia which this year is expected to be running at close to nominal grinding capacity.

Bisnis Indonesia reported that the loan, which will be used to finish the construction of a new US$450m factory in Tuban, East Java, was provided by BNP Paribas and KWF IPEX-Bank of Germany. Construction of the 1.7Mta factory is currently underway and is expected to be completed in 2013.

Holcim Indonesia is the country's third largest cement producer and is aiming for sales volume to reach 7.3Mt in 2011, up 30 per cent in a year, and is aiming to sell 7.5Mt in 2012.  This is running close to the nominal grinding capacity level of 8.2Mt.

The company currently operates two plants at Narogong, west Java and Cilacap, central Java as well as a grinding station at Ciwadan, Banten, west Java. As the company’s existing plants are situated in west and central Java, the new  plant will help to further optimise logistic costs and open up markets cost-efficiently in east Java, Kalimantan and the eastern islands of Indonesia.

Published under Cement News

Tagged Under: Indonesia New project Holcim