Semen Dwima Agung to be incorporated into parent company, Indonesia

Semen Dwima Agung to be incorporated into parent company, Indonesia
08 March 2012

PT Semen Dwima Agung will be incorporated into parent company PT Holcim Indonesia in a moved aimed at reducing production costs, reports the Jakarta Post.

According to the financial report at of December 2011, Semen Dwima Agung help IDR83.12bn (US$9.15m) in assets, with liabilities of IDR96.85bn. The company suffered a net loss of IDR10.55bn in 2011, a significant setback after losing IDR1.79bn in 2010.

Semen Dwima Agung holds licenses to quarry, produce cement and mine clay. The company owns production facilities and a 5Mm2 site in Tuban, East Java. The company has yet to actually carry out any production activities, the Jakarta Post highlights.

Holcim Indonesia’s decision to build its third factor on Semen Dwima Agung’s land in Tuban has led the latter to concentrate on land acquisition and exploration to support the parent company’s new plant.

"The directors and commissioners consider that mining activities and operational activities of the cement factory should be carried out by one entity. By incorporating mining and operational activities at the new plant, Holcim Indonesia will be able to avoid inter-company transactions leading to unnecessary administrative work and taxes, which in turn raise production costs," Holcim Indonesia said.

Published under Cement News