Vietnam: Semen Indonesia plans to invest up to US$300m towards building a cement plant in Vietnam in the next five years as part of its business expansion in Southeast Asia. The Indonesian state-run cement producer intends for its subsidiary Thang Long Cement to build a 1.5Mt/yr cement plant, according to General Director Dwi Soetjipto. Construction is scheduled to start in early 2015 with a operation due to start in 2018.
Thang Long Cement currently holds a cement production capacity of 2.5Mt/yr and the new plant is intended to meet the increasing demand for cement in Vietnam and other Asian countries, including Singapore, Cambodia, Laos and Myanmar. Semen Indonesia holds a 70% stake in Thang Long Cement. It has set a target of becoming one of the leading cement producers in Southeast Asia.
Vietnam will not face a shortage of cement in either the short or long term as the supply is estimated at 75 - 76Mt/yr in 2015 while demand in 2014 is estimated at 65 – 67Mt/yr, according to the Ministry of Construction. The local cement industry had around 2.59Mt of unsold products, mainly clinker, at the end of April 2014.
