Growth in Indonesian market prompts capacity expansion

In the South Sulawesi region of Indonesia, Bosowa Corporation is planning to expand its cement production capacity at a cost of US$120 million. The company’s two plants, Semen Bosowa Maros and Semen Bosowa Batam, are on course to produce 3.5 million t of cement this year. With an additional US$70 million to be spent on the construction of a new plant in Maros, South Sulawesi, the group’s total annual production capacity will reach 4.5 million t.

Demand in Indonesia is forecast to increase as investment in infrastructure projects and in the property market is high. The Indonesia Cement Association (ASI) has predicted that national sales will reach 44 million t this year, up 10% from 2010. Next year is anticipated to see another 13% increase.

Bosowa has also announced a 50-50 joint venture with CTI Group of Jordan to support its sales growth. The JV, called Bosowa Loyd, is reportedly going to spend US$50 million on 10 vessels to transport cement to interisland markets.

Read the article online at: https://www.worldcement.com/asia-pacific-rim/10102011/growth_in_indonesian_market_prompts_capacity_expansion/