Semen Indonesia is still in negotiations to enter a joint venture in Myanmar, according to The Jakarta Post. Speaking with the company’s finance director, the newspaper learned that though the state-run cement group had hoped to complete plans to branch out into Indonesia by the middle of this year, the process has been delayed by a failure to agree to terms. “We initially planned to enter Myanmar to become a major shareholder in a joint venture and acquire a company,” Finance Director Ahyanizzam is reported to have told press. “We’ve found a suitable partner but negotiations did not turn out well because the other party wants a major ownership, too.” The two companies are said to be revising the agreement, with a view to beginning the project next year.
Semen Indonesia continues to pursue expansion elsewhere in Southeast Asia and has reportedly earmarked up to US$150 million to acquire cement companies in Vietnam, Myanmar and Bangladesh. Aside from the Myanmar JV, the group is said to be planning to acquire a majority stake in a Bangladeshi firm in 1Q15 and expanding its presence in Vietnam through a new acquisition and the expansion of Thang Long Cement, in which Semen Indonesia owns a 70% stake. The group is also said to be exploring opportunities within Indonesia in infrastructure, property, electricity generators, pre-cast concrete, sea ports, logistics and shipping.
Edited from various sources by Katherine Guenioui
Read the article online at: https://www.worldcement.com/asia-pacific-rim/01092014/semen-indonesia-pursues-negotiations-for-jv-in-myanmar-392/