Holcim to build new US$300 million plant

PT Holcim Indonesia Tbk, a subsidiary of Holcim, is embarking on a new cement plant project in Tuban, East Java that may cost US$300 million of investment, Detik.com reported.
Holcim, currently the third largest cement producer in Indonesia, is looking for internal and external funding for the project.
Feasibility study on the project is expected to complete by July. The new plant will have installed capacity of 3 million tones per year.
Indonesia currently has combined capacity of 45 million tones per year with utilization rate of 90 percent or 42 million tones output. Domestic demand last year was 30 million tones and is expected to grow 10 percent this year.
PT Semen Gresik Tbk, the largest producer, is also preparing to construct a 2.5 million tones per year plant sometimes next year. Gresik's subsidiary PT Semen Tonasa will also build a 2.5 million tones per year plant in South Sulawesi.
Egyptian Orascom, meanwhile, plans to build a 2.5 million tones cement plant in Indonesia this year.
But without significant improvement in the implementation of infrastructure projects, I'm afraid these expansion programs would only worsen the industry's future.

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