Indocement eyes 6% sales growth in 2014

Indocement has set a growth target of six per cent next year on the back of new capacity additions and rising domestic demand.

In the first nine months of the year, the company increased total cement and clinker volume by just 0.6 per cent per cent. The Citeureup works is adding 1.9Mta of grinding capacity later this year which will boost total capacity to 20.6Mta. It is further adding 4.4Mta of integrated capacity in 2015 in a brownfield project which started construction in October. Two further lines are reportedly being added in the near future, each with 2.5Mta capacity.

"The prospects for the cement industry in 2014 remain strong despite various challenges," Investor Daily quoted the company's commercial director, Daniel Kundjono as saying.?? The key challenge the cement industries faces, according to Daniel, is the recent policy change on stronger rules for loans to the people planning to buy more than one houses. He added that demand potential remains very strong given the country’s infrastructure development, particularly public transport expansion and toll road development.