Displaying items by tag: Indocement

Indonesia: PT Indocement Tunggal Prakarsa Tbk has predicted that cement demand will increase in 2014. Indocement corporate secretary Sahat Panggabean pinned the prediction on increasing infrastructure and real estate projects in 2014.

In order to meet market demand Indocement is currently building a 4.4Mt/yr cement plant in Citeureup. The company is also in the process of seeking licenses for the two 2.5Mt/yr greenfield cement plants to be built in Central Java and a location outside of Java respectively.

In 2013 Indocement faced increased competition from new cement producers in the market and expanded cement production capacity established producers. Indocement also pointed out to Indonesian news agency Antara that some of the new producers were importing cement into the country from abroad.

Indonesia: Indocement Tunggal Prakasa, Indonesia's second largest cement manufacturer, posted a 5.2% increase in its profit in 2013, reaching US$440m. Its revenue also surged by 8.1% to reach US$1.65bn for 2013. It attributed its improved fortunes to an increase in cement prices. "The company used the good market momentum to increase prices, contributing to the increase in net revenue," said Indocement in a statement. Indocement's cement and clinker sales volumes increased by 1.2% to reach 18.2Mt in 2013.

Thank you to everyone who commented on the column in last week's Global Cement Weekly (GCW132, MINTed cement industries). Amongst the more interesting thoughts was that in a large cement producing country like the US, there are regional areas of focus. So, returning to neologisms, FACT might refer to, say, Florida, Alabama, California and Texas, four southern states with the highest cement production capacities in the union. Similar regional breakdowns could be applied to countries such as China, India or Brazil.

Following last week's look at the MINT (Mexico, Indonesia, Nigeria and Turkey) economies in the context of cement we now take a quick recap on what has been happening in the 'I' of the MINT, Indonesia.

Indonesia has a population of 238m, a cement production capacity of 47Mt and a Gross Domestic Product (GDP) of US$1.29tr. Both its cement consumption per capita and GDP per capita are low by international standards suggesting that it has considerable growth potential for its cement industry as its wider economy grows.

Indonesia's biggest cement producer, the state owned Semen Indonesia (formerly Semen Gresik) has reported to local media that its unaudited net profit rose by 14% year-on-year in 2013 to US$410m. Its revenue rose by 12% to US$1.8bn. Its new 1.5Mt/yr cement plant in Tuban, East Java has been reported as being operational, bringing Semen Indonesia's cement production capacity up to 31.8Mt/yr in 2014.

The country's second biggest cement producer, Indocement, has not reported any figures for 2013 as a whole yet. However parent company HeidelbergCement did note that the Indonesian economy had slowed down as a result of falling commodity prices. Cement and clinker sales including exports rose by 0.6% in the first nine months of 2013. Around mid-2013 local media reported that Indocement was losing market share in Indonesia.

Holcim Indonesia has also not revealed its financial situation in 2013. However, like Indocement, Holcim Indonesia reported with its third quarter results that economic growth had 'temporarily' flattened in the country. Operating results had not improved on levels in 2012.

Overall domestic cement sales rose by 5.8% year-on-year to 47Mt for the first 10 months of 2013 according to data from the Indonesian Cement Association. Previous annual rises in cement production and cement consumption had started to slow in 2012.

Growth in the Indonesian cement industry is also having an effect on the larger geographical region. Australian cement producer Boral suspended clinker production at its Waurn Ponds plant in late 2012 due to cheaper imports from countries such as Indonesia. New Zealand followed suit in mid-2013 when Holcim announced plans to build cement import terminals instead of building a new cement plant at Weston.

In summary it seems likely that the cement market in Indonesia slowed down in the first half of 2013 but it still appears to be generating growth none-the-less, true to the MINT pattern. Market analysts from Kim Eng agree, pinning issues with domestic cement consumption in 2013 on capacity bottlenecks and over-crowded ports. Growth in the cement markets for the MINT countries may seem likely but in the case of Indonesia it cannot be assumed.

Indonesia: PT Indocement Tunggal Prakarsa plants to spend US$335m on capital expenditure in 2014, according to its finance director, Tju Lie Sukanto. Most of the allocation will be spent on the construction of the Indonesian cement producer's new brownfield cement plant at Citeureup. He said that the funds will be completely sourced through the company's internal cash and will be used to improve company productivity.

The construction of the new plant at Citeureup started in October 2013 with an estimated total cost of US$545m. When the plant opens in 2015 it is expected to increase the company's cement production capacity by 4.4Mt/yr. The plant is being constructed in cooperation with China-based Tianjin Cement Industry Design and Research Institute. Indocement also plans to construct another cement plant in the same area with a cement production capacity of 1.9Mt/yr costing up to US$120m.

Indonesia: Indocement has ordered seven Loesche vertical roller mills for a new production line at the Citeureup cement plant, south of Jakarta. Citeureup currently comprises nine kiln lines with a total cement capacity of 11.9Mt/yr, making it one of the largest cement plants in the world.

Two type LM 56.4 mills have been ordered to grind raw materials for cement. Each will have a capacity of 400t/hr at a product fineness of 10% R 90 µm. Two type LM 28.3 D mills are intended to grind coal and have a capacity of 40t/hr at a product fineness of 12 % R 90 µm. Indocement has ordered three type LM 56.3+3 mills to grind clinker. Each mill will be producing 240t/hr of PPC cement with a fineness of 19% R 32 µm.

In addition to supplying vertical roller mills, Loesche will also be responsible for the cyclones, dedusting filters, fans and corresponding hot gas generators for the cement mills. Delivery for Citeureup plant will start at in August 2014.

Indonesia: Indocement Tunggal Prakarsa, a leading Indonesian cement producer, saw its market share fall from 32.5% to 30.6% in the first three months of 2013. A report by the Jakarta Globe attributed the decline due to other cement producers raising their production levels to match growing infrastructure development programs in the country. However, Indocement said that it actually believed in protecting margins rather than increasing its sales.

The HeidelbergCement subsidiary saw its domestic sales increase year-on-year by 2.1% to 4.2Mt for the first three months of 2013. However, the Indonesian cement industry as a whole saw sales volumes of cement rise by 8.6% to 13.6Mt for the quarter.

"Our competitors have managed to add to their cement production capacity, thus resulting in our sales volume being not quite as high as expected," said Indocement's Finance Director Tju Lie Sukanto.

Indonesia: PT Indocement Tunggal Prakarsa reportedly reduced its exports by 84.5% in 2012 in order to meet rising domestic demand for cement in Indonesia, according to a company spokesman.

The state-run company cut its exports to 0.1Mt in 2012 from 0.6Mt in 2011, and witnessed a rise of 12.3% in its domestic sales, which reached 17.9Mt in 2012. In 2011 the company sold 15.4Mt of cement at home.

In 2012 the company's cement brand, Tiga Roda, accounted for a major part of its market share with sales of the branded cement rising by 32%. In 2011 the company's brand covered 31.5% of Indocement's entire market share.

The positive performance in the company's cement sales in 2012 was due to Indocement's strategic expansion plans that involved building new cement plants in the country. In addition, the cement producer has signed an initial agreement on equipment provision services, construction and implementation with the Chinese Sinoma Group.

Indonesia: PT Indocement Tunggal Prakarsa has reported that its net income rose by 32% to US$491m in 2012 from US$372m in 2011. The cement producer attributed its success to Indonesia's growing middle class, strong demand in the domestic residential market and an increase in the domestic price of cement of 7%.

The rise follows the highest domestic sales volumes of cement recorded for Indocement of 17.9Mt in 2012, a 16% rise compared to 16Mt in 2011.

Its earnings before interest, taxes, depreciation and amortisation rose by 30% to US$686m in 2012 from US$524m in 2011. Although national sales growth of cement in Indonesia slowed to 14.5% in 2012, Indocement grew its market share to 32%.

In its outlook for 2013 Indocement commented that it believes that domestic demand will continue to grow following new national infrastructure projects. The producer has a 4.4Mt/yr brownfield plant in Citeureup ready for completion in the third quarter of 2015. It has signed a preliminary agreement with Sinoma Group for the construction of a new US$671m plant in Citeureup. It is also considering plans to build two new greenfield 2.5Mt/yr cement plants.

Indonesia: Indonesia's second-largest cement producer, PT Indocement ,has announced that its recent expansion drive will increase production to up to 30Mt/yr by 2017, up by almost 50% from the 2012 target of 20.6Mt/yr.

One of these projects is the construction of a cement mill in Citeureup, West Java, with an expected production capacity of 1.9Mt/yr. The mill is scheduled for completion in 2013.

Besides the new cement mill, the company is in the final planning stage of constructing a cement factory with a capacity of 4.4Mt/yr at an existing location (brownfield), also in Citeureup. Additionally the company is conducting final studies for the construction of two new cement factories (greenfield) in Central Java and outside Java, each of which will have capacities of up to 2.5Mt/yr.

Finance director Tju Lie Sukanto said the company would fund the expansion projects partly with US$757m of internal cash. He added that this year's market conditions, such as the continuing strong residential-market trends, thanks to an expanding middle class, would further facilitate the company in reaching its growth targets.

Indonesia: PT Indocement, Indonesia's second largest cement producer, has announced that its fourth-quarter 2011 net profit rose 20% as demand for construction jumped in Southeast Asia's biggest economy. The firm's fourth quarter net profit was US$109m in 2011, compared with US$91m in the same period in 2010.

The HeidelbergCement subsidiary reported a full year 2011 net profit of US$392m, up by 12% from US$351m in 2010. Analysts forecast that the full-year 2011 net profit will rise by 11% to US$391m. Indocement's 2010 full-year net revenue rose by 25% to US$1.5bn.