Holcim Indonesia secures loan for Tuban Line 2 project

Holcim Indonesia is to receive a loan from the commercial arm of the German development bank KfW Ipex and BNP Paribas for US$98m for a second kiln line project at the new Tuban cement works.

 “The financing is covered with an Euler Hermes export guarantee based on deliveries and services provided by ThyssenKrupp Resource Technologies,” Stefan Eitel, director team head of Metals & Mining at KfW Ipex said.

The loan has a term of 7.5 years and will have a fixed interest rate based on the commercial interest reference rate.

As the signing has concluded, Holcim is all set to begin construction of the new line, Eitel added. Tuban Line 2, will be built by ThyssenKrupp Resource Technologies and will be identical to Tuban Line 1 which is built on the same site.

The total investment cost of Tuban 2 is US$315m and will have a capacity of 1.7Mta, bringing Tuban’s total capacity to 3.4Mta.