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Holcim invest in Indonesian growth market

IN view of the continuous economic growth in Indonesia, Holcim Ltd have decided to build anew cement plant with an annual capacity of 1.6 million tonnes in theeastern part of the main island of Java, near the city of Tuban.

At aninvestment cost of around US$450 million, the new plant with open sea loading and unloading facilities will commence operations in the first half of 2013, subject to the granting of all necessary local licenses. The investment will allow Holcim Indonesia tokeep up with expected market growth in the region.

When complete, the new plant willcomplement the company’s existing production and distribution network, which comprises two cementplants and one grinding station with an current annual capacity of 8.6million tonnes, together with aggregates and ready-mixed concrete activities.

Moreover, as Holcim Indonesia’s existing cement plants are situated in westand central Java, the new plant will help to further optimize logisticscosts and open up markets cost-efficiently in east Java, Kalimantan and theeastern islands of Indonesia.

After the Asian crisis in the 1990s, the Indonesian economy has undergone a period of continuousrecovery. From 2000 to 2009, GDP grew by anannual mean of 5% and cement consumption increasedover-proportionately, with the highest volume growth recorded on the mainisland of Java. According to forecasts, growth in the construction industrywill further accelerate in coming years.

Holcim Indonesia currently employ a workforce of approximately 2,500 and in 2009 achieved a turnover of around US$500 million.

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