Indocement allocates up to US$150m to build two cement plants

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Indonesia: PT Indocement Tunggal Prakarsa Tbk is preparing to invest US$150m towards building two greenfield cement plants in North Sumatra and in Pati, Central Java respectively. Each plant will have a cement production capacity of 2.5Mt/yr. The company is currently conducting a feasibility study, said Indocement's president director Christian Kartawijaya. The investment is intended to boost the company's production by 2018 in reaction to decreasing market share.

Indocement aims to boost its production capacity by about 45% to 30Mt/yr in 2018 when the two greenfield plants are expected to have begun operations. Currently the company produces 20.6Mt/yr of cement. The new plants will maintain the company's market share in Indonesia at 31%. The company will source the funding internally.

Indocement has allocated US$385m for capital expenditure in 2014 to boost cement production. In October 2013 the company started work on its 4.4Mt/yr cement plant at Citeureup. This plant is planned to start operation in the fourth quarter of 2015.

Last modified on 13 August 2014


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