Holcim Indonesia’s shareholders approved the company’s annual report, reappointment of the Board of Commissioners and a dividend of Rp 15 per share to be distributed from 2015 earnings, representing a payout ration of 65%.
President Director of Holcim Indonesia, Gary Schutz, sounded a note of caution on currentmarket conditions. “We are pleased to have completed the acquisition of Lafarge CementIndonesia (LCI) last February, which gives us a significant presence in Sumatera, additionalmarket share and reach. However the demand-supply situation is a serious issue, particularlysince there is a substantial unmet need for cement in Indonesia. We are concerned thatGovernment spending plans – especially those for infrastructure – should be realised on timeand in full this year. Infrastructure alongside housing development are both vital catalysts inachieving planned growth rates for the economy. It is equally important in order that Indonesiastays competitive within the Asean Economic Community.”
He emphasised that the LCI acquisition will aid Holcim Indonesia in increasing its sales and will serve a growing customer base in the two largest cement markets, Sumatera and Java, with some valuable synergies in linking the undersupplied market of North Sumatra with the new capacity available at the company’s Tuban plant, East Java. Holcim is also launching a new cement terminal in Lampung, to serve south Sumatera in 2016.
Adapted from press release by Rebecca Bowden
Read the article online at: https://www.worldcement.com/asia-pacific-rim/27052016/holcim-indonesia-agm-approves-annual-report/