Semen Indonesia plans power plant and Vietnamese expansion

Semen Indonesia is reportedly thinking of building a 100 MW coal-fired power plant to supply the expanding Indarung plant in Padang, West Sumatra. The company recently announced the beginning of construction of line VI at Indarung, which will have an annual capacity of 3 million t of cement and will bring the total power consumption at the site to an estimate 200 MW when it enters production in 2016.

The power plant would primarily supply the cement plant, but the company has said that if there was any excess power it could be distributed to local residents. Such investments become more attractive as the government announced an increase in electricity prices at the beginning of May.

Last week, Semen Indonesia announced plans to build a 1.5 million tpa plant in Vietnam to add to the existing 2.5 million tpa capacity it holds in country through Thang Long Cement Company (TLCC). Semen Indonesia has a 70% stake in TLCC, where capacity utilisation is currently at 100%. Cement is dispatched within Vietnam and further afield to Singapore, Cambodia, Laos and Myanmar. Bangladesh and Sri Lanka have also been named as future potential export markets. The new plant, at an investment of US$250 – 300 million, will be built in the south of the country near the company’s limestone quarry.

Edited from various sources by Katherine Guenioui

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