Displaying items by tag: Indonesian Cement Association

Indonesia: Indonesian cement sales growth has fallen to 7.5% at 27.8Mt for the first six months of 2013 from 25.9Mt in the same period in 2012, according to the Indonesian Cement Association (ASI). Year-on-year sales grew by 15% for the January to June period between 2011 and 2012. The deceleration in cement sales is expected to continue in the second half of 2013 due to a reduction in infrastructure development.

Reasons for slower national growth in the first half of 2013 include fewer infrastructure projects, falling commodity prices that have affected development in resource-rich provinces and more frequent rain, according to ASI chairman Widodo Santoso. Sales in Java, the main driver of growth in the first months of 2013, rose by 9.2% to 15.5Mt. Meanwhile, sales outside Java rose by 5.38% to 12.4Mt.

State-owned cement producer PT Semen Indonesia said that the 7.5% growth in nationwide cement sales was still higher than sales growth before 2011. Figures from the ASI showed domestic cement sales rose 14.5% in 2012, 17.7% in 2011, 6% in 2010 and only 0.9% in 2009.

Myanmar: Indonesia's largest cement producer PT Semen Indonesia, formerly Semen Gresik, has announced that it will build a US$200m cement plant in Myanmar early in 2014 as part of its expansion into the Southeast Asian market.

The company may pitch about US$70m for the plant, which it would set up with its Myanmar partners, as it aimed to control about a 40% stake in the planned joint venture, said president director Dwi Soetjipto in a press event reported by the Jakarta Post. The construction of the cement plant, designated with a capacity of 1Mt/yr, is scheduled to start in early 2014, while operations are expected to begin in 2017. Based on the firm's plan, the new plant will serve the Myanmar market and neighbouring countries like Thailand and Bangladesh.

The move by Semen Indonesia follows its acquisition of Vietnam's largest cement producer, Thang Long Cement Joint Stock Company, in late 2012. It now aims to expand its annual capacity to 6.5Mt/yr from 2.3Mt/yr by establishing two new plants. At home in Indonesia, Semen Indonesia is also preparing for capacity upgrades with the construction of cement plants in Rembang, Central Java and Padang, West Sumatra, both with production capacities of over 2.5Mt/yr.

In 2013 the firm has targeted a domestic market share of up to 44%, up from 41% in 2012, supported by increased output to around 27Mt from 22.6Mt in 2012, according to Dwi. The overall domestic cement market is estimated to increase by more than 10% to 6Mt in 2013, according to the Indonesian Cement Association.

Indonesia: Indonesia's domestic cement sales grew by 17% in 2011 on the back of new property construction, according to Indonesia's cement association (ASI). Total domestic cement sales in 2011 reached 48Mt, with more than half the sales in the main Java island, data from the association showed.

"Indonesia had large physical development during 2011 and the result followed strong economic growth figures. We also saw a huge decline in exports, which means domestic suppliers prioritised the domestic market," said ASI chairman Urip Trimuryono.

Total cement exports fell by 59% to 1.2Mt from 2.9Mt in 2010. The country's cement sales fluctuate month-to-month depending on factors such as holidays and the government's end-of-year project completion deadlines. Sales volumes in December 2011 rose by 17% from the same month in 2010 to 4.6Mt. The association has forecast cement sales growth by 6% in 2012.

"We believe the 2012 outlook for cement remains promising, supported by the land-clearing law and continued strong property demand on the back of a continued low interest rate environment," said Teguh Hartanto, an analyst at Jakarta-based Bahana Securities.

Indonesia's parliament stamped a long-awaited land acquisition bill in December 2011, an attempt to break the bottleneck in infrastructure development that has long been seen as holding back growth in the country.

Indonesia: Domestic cement sales in Indonesia, the largest economy in south east Asia, rose by 26% in November 2011 from the same month in 2010, according to data released by the Indonesian cement association (ASI).

Sales volume reached 4.4Mt, compared to 3.5Mt in November 2010. Despite this, sales were down by 4.7% compared to October 2011, which saw 4.7Mt of cement sold. It should be noted that end of year deadlines for completion of government construction projects traditionally inflate November figures compared to those for December.

The ASI estimates that total domestic sales will reach around 45-46Mt in 2011, up by 15% from 2010, according to its chairman Urip Trimuryono.

In the longer term it is likely that cement demand growth will be more rapid in the country, with Indonesia's parliament stamping a long-awaited land acquisition bill on 16 December 2011. The bill will attempt to remove a bottleneck in infrastructure development that has long been seen as holding back growth in the country, providing a greater demand for cement.

Indonesia: HeidelbergCement plans to invest USD500m in a plant on Indonesia's Java island, Indonesia's trade minister Gita Wirjawan announced on 19 October 2011.

Indonesia's cement sales, an indicator of economic growth in Southeast Asia's largest economy, rose 52% in September 2011 year-on-year due to increasing property and infrastructure building.

Cement sales volumes reached 3.8Mt, from 2.5Mt in September 2010 according to Urip Trimuryono, chairman of the Indonesian Cement Association. Sales in August 2011 had dipped 0.3% year-on-year, due to slower activity during the Ramadan and Eid al-Fitr holiday. Trimuryono forecast full year 2011 cement sales would grow 14%, with growth moderating next year to 10%.

Indonesia: The capacity of Indonesian cement industries will increase by 5Mt/yr in 2012 to 59Mt/yr. "The capacity hike is needed to respond to increasing demand in the domestic market," said the head of the Indonesia Cement Association (ASI), Urip Trimuryono.

Urip said the additional capacity would come from PT Semen Gresik and PT Semen Tonasa, which each plan expansions of 2.5Mt/yr. In 2013 the installed capacity will increase by 1.8Mt/yr following the completion of the construction of a plant owned by PT Holcim Indonesia.

Investment in the cement industry is excluded from the list of industries banned for foreign investment and Urip said that local cement producers were ready to face competition from foreign investors. "This means anyone may build a cement factory in Indonesia but must be ready for free competition," he said.

Three foreign companies plan to invest in the national cement sector, namely Lafarge Cement Indonesia, which will build a cement factory in Langkat, North Sumatra with a capacity of 1.5Mt/yr with an investment worth USD350-550m. The second company is China Anhui Conch Group, which is investing a massive USD2.35bn in cement factories in the four eastern provinces of South Kalimantan, East Kalimantan, West Kalimantan and West Papua. The third line with the company is China Triumph International Engineering Co., which will invest USD350m to build a 2-3Mt/yr cement plant in Grobogan, Central Java.