Indonesia: PT Holcim Indonesia Tbk has launched its new US$800m, 3.4Mt/yr cement plant in Tuban, East Java.
Having started the construction five years ago, the plant is Holcim's first greenfield project in Indonesia. The plant will serve the East Java market and supply Sumatra and Kalimantan. With the new plant, Holcim Indonesia's cement production capacity has grown by 40% to 12.5Mt/yr.
"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 realisation of delayed infrastructure projects and housing," said Gary Schutz, CEO of Holcim Indonesia. "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."