Displaying items by tag: Indonesia
China: Anhui Conch returned to rising sales revenue and profit in 2016 after a problematic year in 2015 beset by a poor market for cement. Its revenue rose by 9.7% year-on-year to US$8.12bn in 2016 from US$7.40bn in 2015. Its sales volumes of cement and clinker rose by 8% to 277Mt. Its net profit rose by 14% to US$1.24bn from US$1.09bn. The group says that its adoption of a flexible marketing strategy for different regions and plants and a focus on lowering production costs delivered sales growth and operating savings. However, its full year results are in contrast to its ones for the first nine months of 2016, in which it reported small declines in its revenue and net profit.
During the year the cement producer finished building six clinker production lines at Yingjiangyunhan Cement and Yiyang Conch Cement and it completed 18 cement grinding plants at Wenshan Conch Cement and Ganzhou Conch Cement. In addition to purchased the assets of Anhui Chaodong Cement. Outside of China the group completed lines in Indonesia and Myanmar, started buildings projects in Indonesia, Cambodia and Laos and started early work on new projects in Russia and Myanmar. At the end of 2016 the group says it has a clinker and cement production capacity of 244Mt/yr and 313Mt/yr respectively. It also reported that it had completed 15 waste treatment projects by the end of the year to feed cement plant kilns with domestic waste.
Indonesia: State-Owned Enterprises Minister Rini Soemarno says that President Joko Widodo is expected to inaugurate Semen Indonesia’s Rembang cement plant in April 2017. Soemarno made the comments following a visit to the plant, according to the Jakarta Post. The inauguration of the plant is dependent on environmental clearance, which should be completed in April 2017. However, the plant has been the focus of intense protests by local farmers and both the Supreme Court and a local government ruled to shut down the plant.
Indonesia: Semen Indonesia’s sales revenue fell by 3% year-on-year to US$1.95bn in 2016 from US$2.01bn in 2015. Its gross profit fell by 7.4% to US$737m from US$796m. Its overall cement sales volumes remained stable at 28.9Mt although sales from its Vietnamese subsidiary rose by 10.9% to 2.59Mt and its domestic subsidiary Semen Padang saw its sales fall by 3.5% to 6.29Mt. Exports from Indonesia rose by 24.4% to 0.6Mt.
Despite its static cement sales in Indonesia, the cement producer has two new 3Mt/yr cement plant projects respectively underway. The Indarung cement plant in West Sumatra is scheduled for commercial operation in April 2017. The Rembang cement plant in Central Java remains suspended whilst the company seeks environmental clearance. The government revoked permits for the site in late 2016 and it has been the focus of protests. In addition, a 30MW waste heat recovery system at the Tuban plant is scheduled to start operation by the end of 2017.
Australia: Semen Padang, a subsidiary of Semen Indonesia, has started exporting cement to Australia. It delivered 22t of cement to Sydney on 21 February 2017 on the Meratus Minahasa V.1705S, according to the Jakarta Post. Commercial director Pudjo Suseno said that the shipment was made in response to demand from potential Australian buyers revealed at the end of 2016. The cement producer has previously sold exports to countries including Bangladesh, the Philippines and Sri Lanka. It exported 396,000t of cement and 90,000t of clinker in 2016.
Indonesia: The ground-breaking ceremony for Semen Indonesia’s new Kupang cement plant has been scheduled for 10 March 2017. The governor of East Nusa Tenggara, Frans Lebu Raya, told the Antara news agency that the preparation phase for the project had been completed. The new line will have a production capacity of 1.5Mt/yr and it will be situated in the Bolok Industrial District. The project has a budget of US$150m and it will take about three years to build. The new plant is a join-venture between Semen Indonesia and Semen Kupang. Both cement producers already operate cement plants in Kupang.
Indonesia: Farmers have blocked access to Semen Indonesia’s Rembang cement plant as part of on-going protests against the construction of the unit. Around 250 farmers protested at the site in support of a Supreme Court ruling in October 2016 and a local government order in favour of shutting down the plant, according to the Jakarta Post newspaper. The activists claim that activity has continued at the site.
However, Semen Indonesia denies that is has started operation at the plant saying that its workers are merely ‘taking care of its assets.’ The cement producer says it stopped construction soon after it received the governor's decision to revoke its permit. It added that it had spent US$337m on the plant and that it was 99% complete when the governor issues his decree. 3000 workers were also laid off at the same time.
Indonesia: Semen Indonesia has prepared US$449m to be spent on capital expansion upgrades in 2017 to support government infrastructure targets. The plan includes four cement plants with a total production capacity of 10.5Mt/yr, according to the Jakarta Post. The Rembang plant in Central Java and the Indarung VI plant in Padang, West Sumatra are in the final stages of construction. New plants in Aceh and Kupang are also being planned for completion in 2019 and 2020 respectively, although these projects will require additional funding. The cement producer is also planning to build two packaging plants in Bengkulu and Maluku and a 30MW waste heat power plant at its plant in Tuban, East Java.
Company corporate secretary Agung Wiharto added that Semen Indonesia has forecast a 5% rise in demand for cement in 2017 to 70Mt. This is mainly due to government plans to boost infrastructure development across the country.
Indonesia: Ganjar Pranowo, the governor of Central Java, is willing to shut down Semen Indonesia’s Rembang cement plant if the central government approves it. Ganjar made a statement in response to a protest staged by Rembang residents against the cement plant following a Supreme Court ruling in favour of the residents, according to Tempo magazine. He added that he has sought advice from the government including the presidential office, the Environmental Affairs Ministry and the Ministry of State Owned Enterprises. Ganjar has established a team to conduct a study and he has until 17 January 2017 to respond to the ruling.
Indonesia: Bosowa Corporation has started operation at a 1.8Mt/yr cement grinding plant in Banyuwangi, East Java. The plant cost US$60m, according to the Jakarta Post. It will add to the 5.4Mt/yr of cement that Bosowa produces at its two plants on South Sulawesi and Riau Islands.
World: Workers at LafargeHolcim are holding a ‘global day of action’ in advance of International Human Rights Day on 10 December 2016 to draw attention to the world’s largest cement maker’s alleged widespread violations of workers’ rights, according to the IndustriAll Global Union federation. Workers in Europe, Africa, Asia and the Americas will ‘mobilise, take actions and demand’ that LafargeHolcim respect workers’ rights.
The union action intends to highlight alleged worker rights violations including an increase in workplace fatalities in 2015, an increasing use of precarious employment, illegal replacement of striking workers in Canada, use of child labour and targeting of union members for dismissal in Uganda, unfair treatment of displaced families due to the development of a plant in Ambuja in India and a ‘poor’ response to workplace accidents in Indonesia.
Unions in the federation are demanding that LafargeHolcim use less precarious work, cooperate better with trade unions on health and safety and restructuring, and enter into ‘meaningful’ negotiations with them about the future of labour relations and social dialogue.
“We expect that the world number one in the cement sector is not only number one in figures and cement sales, but also in labour standards and workers’ rights,” said general secretary of the European Federation of Building and Woodworkers (EFBWW) Sam Hägglund.