Inaugurates its first cement production from Tuban 1 line.

17.06.2014
 

• Assurance of supply and closer proximity to serve wider markets.

• Additional 40% in production capacity by the end of 2015 with Tuban 2 kiln line completed.

• Logistics and other investments improve market coverage, products and services capability to achieve Customer Excellence.

Tuban, East Java (17/6) - PT Holcim Indonesia Tbk officially announced its first cement production from Tuban 1 line at its Tuban Plant today, 17 June 2014, adding 1.7 million tonnes per annum of the company’s total production capacity. Attended by the Board of Directors and a number of key customers and distributors, the inauguration is marked with a ceremony and plant tour to witness the details of the biggest investment being realised by Holcim worldwide at the time being.

In his opening message at the inauguration, Holcim Indonesia CEO, Eamon Ginley said, “The demand for Holcim products increased and has continued in 2014. This new capacity positions Holcim Indonesia in a very favourable position to capture future growth. Holcim Indonesia is committed to serve its customers with excellence by being easy to do business with, create values and provide the best solutions, as well as build lasting relationship with the customers”.

As last year has been a transition period after a number of years of tight supply conditions, Holcim continued to operate at maximum capacity in 2013 and 2014. The additional 20% boost in production from Tuban 1, and a further increase of another 20% in capacity that Tuban 2 will bring once it is completed in early 2015, provides competitive advantages while assuring product supply, with low cost production and close proximity to customers. The investment completes the company’s footprint for Java also from timely investments in logistics and channel capacity for domestic markets as a whole.

“Tuban Plant enables Holcim to serve our customers even more dedicated and helps us to achieve our aspiration of maintaining our position within the top three in the Indonesia’s cement industry”, said Eamon.

Furthermore, Eamon expressed his appreciation to the given support  and partnership from the company’s stakeholders; from shareholders, contributing employees, local communities, as well as precious customers and business partners, “Tuban Plant is also built from 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 building relationships based on mutual respect and trust with all our stakeholders to show that we care. We believe that by fulfilling our social responsibilities we can add value to our business, further contributing to our vision of building sustainable solutions for society’s future”.

 

Business Summary

Holcim has increased shipment by rail specifically in Java to shorten supply chain with more time and cost efficient operations, and has further extended its brand and reach into Kalimantan and Sumatra. The high demand for concrete additionally contributes to the company’s financial growth. In support of a full order book, a new aggregates quarry was acquired and an additional investment programme is underway to expand the number and capacity of concrete plants in order to keep up with demand.

During the first quarter of the year, Holcim gained from steady sales, despite slower construction activity compared to a year ago. Margins have held up as the company passed on transportation cost increases that have affected the sector as a whole. The company achieved sales revenue growth of 9.1% on an increment of 1.5% in cement volumes, increment of 7.9% in ready-mixed concrete volumes and increment of 27.5% in aggregates volumes.

 

Environmental and Social Performance

Early this year, Holcim Indonesia received double Platinum Awards from the Global CSR Summit 2014 for its Posdaya program supported by its Cilacap Plant and Integrated Farming Program in Tuban. Recently, Holcim just received a Small & Medium Enterprises Award from Sebelas Maret University of Solo as the Best Private Company supporting local’s small businesses and creating new business opportunities for the community surrounds Tuban Plant through seafood processing program, young entrepreneurship development program and duck egg hatchery program.

 

Outlook

In the current year, demand for Holcim building materials and the portfolio of value added services and specialist products remain excellent. Management views the elections as a considerable opportunity for continued resurgence in business sentiment and further investment to leverage Indonesia’s strong fundamentals and achieve long term economic growth targets and to strengthen its offering of value adding and innovative products, services and solutions to its customers.

End


About  PT Holcim Indonesia Tbk


PT Holcim Indonesia Tbk  (Holcim Indonesia) is a publicly listed company which its majority stake  (86.35%), is owned and managed by Swiss-based Holcim Group, one of the world’s largest cement companies with more than 85,000 employees and production capacity of more than 170 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 1-East Java and a grinding facility in Ciwandan-Banten with total capacity of 11 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:

Rusli Setiawan
Diah Sasanawati (Anna)
Relationship Management Director Corporate Communications Manager
PT Holcim Indonesia Tbk PT Holcim Indonesia Tbk
Mobile : 0811 860375 Phone Number : +62 21 29861000 ext 8361
  Mobile  : 0813 81818554
e-mail : rusli.setiawan@holcim.com e-mail : diah.sasanawati(at)holcim.com
 website: www.holcim.co.id website: www.holcim.co.id