Holcim Indonesia to integrate two subsidiaries

Holcim Indonesia to integrate two subsidiaries
08 April 2014

Holcim Indonesia plans to integrate two subsidiaries as part of efforts to improve operational efficiency, the company said in a statement on Friday.

The Indonesian division of the cement Swiss major plans to merge units Bintang Polindo Perkasa and Wahana Transtama. Holcim now controls 100 per cent of Bintang Polindo after it acquired the ownership from Cemex Asia in 2008. Bintan Polindo owns cement milling facilities with a capacity of 600,000t in Ciwadan, Banten. Meanwhile, Wahana Transtama, also fully owned by Holcim, has been idle since 2006. Holcim seeks to consolidate assets in the two subsidiaries.

“We believe the merger will boost the effectivity of business activities,” the company said in a filing to the Indonesia Stock Exchange (IDX) on Friday.

Holcim Indonesia recorded a 26.7 decrease in its profits last year to reach IDR952.1bn (US$83.8m), but its sales increased by 8.8 per cent to reach IDR9.8trn, supported by a rise in cement prices.

The company operates three cement plants in Narogong (West Java), Cilacap (Central Java) and Tuban (East Java).

The plants have a combined maximum production capacity of 10.8Mta, a 40 percent increase from the previous year, thanks to the operational of its newest plant in Tuban.

Published under Cement News