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Semen Indonesia begins construction of 3 million t cement plant

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World Cement,

Semen Indonesia subsidiary Semen Padang has launched construction of its 3 million tpa Indarung VI cement plant in West Sumatra. According to reports the Rp.3.35 trillion (US$279.5 million) plant is scheduled to begin operations in 2H16. The new line brings Semen Padang’s total cement production capacity to 10.5 million tpa. The company is reported to have a 45% share of the market in Sumatra and western Java.

Last week, Semen Indonesia announced plans to acquire another cement company in Vietnam, namely Ha Long Cement. The move reflects Semen Indonesia’s ambition to become the market leader in the ASEAN region by branching out regionally. The company is already present in Vietnam through its acquisition of a 70% stake in Thang Long Cement. Vietnam is seen as a strategic base from which to export to surrounding nations where there is a cement deficit.

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