Holcim inaugurates the new 3.4 million tonnes cement plant in Tuban, East Java, despite the economic slowdown.

24.08.2015
 

Tuban (24/8) – Holcim Indonesia officially launched its new cement plant in Tuban, East Java today. The inauguration event of 3.4 million tonnes per annum capacity is attended by Minister of Industry, Saleh Husin SE, M.Si., Head of Tuban Regent, H. Fathul Huda, and the Board of Commissioners and Directors of PT Holcim Indonesia Tbk.

“The 3.4 million tonnes Holcim’s Tuban Plant, will surely add to national cement production capacity significantly, and it is expected to meet the domestic demand and ensure supplies. The national cement capacity increase, is aligned with the integrated development acceleration , which drives the cement industry to increase. While, Holcim’s other efforts to optimize supply chains by having grinding plant, packing plant, batching plant, and other warehouses outside of Java Island, are so much helping to save distribution cost, that will support an even cement supply, especially for Eastern part of Indonesia”, said Saleh Husin, Minister of Industry, in his speech.

Having started the construction five years ago, the plant realized Holcim’s first greenfield project in Indonesia. The USD 800 million investment, is dedicated to serve the East Java market and supply Sumatra and Kalimantan. The new Tuban Plant adds 40% of the company’s total production capacity to reach 12.5 million tonnes of cement per annum.

The new Tuban Plant applies most advanced technologies among the group’s existing plants. Rest assured, the plant will operate sustainably and give values for the business, as well as the environment”, said Gary Schutz, CEO of Holcim Indonesia.

Adding to that, Gary said, “currently Holcim Indonesia is operating in an oversupply market and market slowdown. However, we believe that it is temporary as construction markets in developing countries are cyclical. The overall long-term macroeconomic fundamentals in Indonesia remain strong and the domestic economy will recover with the realization of delayed infrastructure projects and housing”.

“The new Tuban Plant completes our presence in Java as it will serves our markets better, ensures supplies, and secures our position among the three biggest cement players in Indonesia”, he added.

Furthermore, Gary expressed his thanks and appreciation to the given support and partnership to the stakeholders, especially Indonesian government who has helped and was involved throughout the project. “The Tuban Plant is also built with the acceptance and support of the locals. We aim to contribute to the communities in which we operate through investment and engagement, and are committed to build relationships based on mutual respect and trust with all our stakeholders. We believe that by fulfilling our social responsibilities, we can add value to our business and realize our vision of building sustainable solutions for society’s future”, said Gary.

 

Overview and Business Projections

National cement sales is predicted to remain flat/might slightly decrease to 58-60 million tonnes this year. With the ongoing large-scale production capacity expansion by existing and new business players national production capacity is projected to reach 100 million tonnes by 2018. The delays in spending for infrastructure projects and housing, did result in a contraction of the cement market by -4.4% to 28.1 million tonnes in the first half of this year. National business players also got impacted by the economic slowdown against the sales volume and net profit achieved. Depending on Government actions and steps taken in regard to fiscal and monetary policies, the realization of promised infrastructure projects, the construction sector is predicted to return to growth as from 2016.

To manage changing market conditions, Gary said, Holcim Indonesia remains focused on maximizing revenues through quality excellence in products, services, and delivery via its distribution channels and partners, as well as operational excellence by increasing efficiencies at all levels.

As a premium brand, Holcim does compete on value, which is a competitive advantage over the longer term. “We are focused on delivering values for customers. We aim to be an innovation leader such what we’ve done with Solusi Rumah franchise which has boosted home ownership and new opportunities for masons, retailers and developers. Value added solutions such as SpeedCrete™, ThruCrete and PakCrete, are designed to help developers to save money and create buildings/roads that are longer lasting, more energy and resource efficient and therefore sustainable,” closed Gary.

 

Become a part of worldwide largest group

15 July 2015 marked a historic milestone for world’s two leading cement companies; Holcim and Lafarge. Both agreed to a merger of equals and formed a new group called LafargeHolcim, “A New Leader for a New World”. Aiming to become the leader in many aspects of business, the new group emphasizes focus on customers, health and safety, integrity, and sustainability. Thus, LafargeHolcim operates in more than 90 countries and employs approximately 115,000 employees across the continents.

In Indonesia the process of integration has started following the rules and regulations under the  Indonesian law. Until final local approval from the relevant Government Authorities is achieved Lafarge Indonesia and Holcim Indonesia will run business separately as usual and compete in the market.

 

About  PT Holcim Indonesia Tbk

PT Holcim Indonesia Tbk (Holcim Indonesia) is a publicly listed company which its majority stake  (80.65%), is owned and managed by Swiss-based Holcim Group, one of the world’s largest cement companies with more than 65,000 employees and production capacity of more than 211 million tons of cement.

As one of the largest cement companies in Indonesia, PT Holcim Indonesia Tbk maintains integrated businesses of cement, ready-mix concrete, and aggregates production. The company operates three cement plants in Narogong-West Java,  Cilacap-Central Java, Tuban-East Java and a grinding facility in Ciwandan-Banten with total capacity of 12.5 million tons of cement and employs more than 2,500 employees. 

PT Holcim Indonesia Tbk operates a domestic building material supply network, which covers special distributors, retailers, masons, and Solusi Rumah outlets – the outlet provides housing design service, building materials, building consultation, and financing access. All under one roof.

 

Further information please contact:

Diah Sasanawati (Anna) Indriani Siswati
Corporate Communications Manager Corporate Communications East Java
PT Holcim Indonesia Tbk PT Holcim Indonesia Tbk
Phone Number: +62 21 29861000 ext 8361 Phone Number: +62 31 531 8880 ext 7721
Mobile: 0813 81818554 Mobile: 0812 3277014
e-mail: diah.sasanawati@holcim.com e-mail: indriani.siswati@holcim.com
website: www.holcim.co.id website: www.holcim.co.id