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Holcim to build new cement plant in Indonesia

World Cement,

Holcim Ltd has decided to build a new cement plant with an annual capacity of 1.6 million tonnes in the eastern part of the main island of Java, near the city of Tuban. The investment costs will amount to around US$ 450 million.

The new plant with open sea loading and unloading facilities will go into service in the first half of 2013, providing all necessary local licenses are granted in due time. This investment will allow Holcim Indonesia to keep up with the expected market growth.

Holcim already has two cement plants and a grinding station with an annual capacity of currently 8.6 million tonnes and activities in the areas of aggregates and ready-mix concrete. The new plant is expected to complement its activities in the region it is being built.

As Holcim Indonesia's existing cement plants are situated in West and Central Java, the new plant will help to further optimise logistics costs and open up markets cost-efficiently in East Java, Kalimantan and the eastern islands of Indonesia.

After the Asian crisis in the 90s, the Indonesian economy has continuously recovered. In the years 2000 to 2009, the gross domestic product grew by an annual mean of 5% and the cement consumption rose over-proportionately. The highest volume growth was recorded on the main island Java. According to forecasts, growth in the construction industry will further accelerate in coming years.

In business year 2009, Holcim Indonesia achieved a turnover of around US$ 500 million and currently employs a workforce of some 2500. "This investment will allow Holcim Indonesia to keep up with the expected market growth," the company said.

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