Semen Indonesia eyeing another Vietnamese acquisition

Semen Indonesia is looking to acquire a second cement producer in Vietnam to further bolster its presence in the southeast Asian country.

Director of finance Ahyanizzaman said Semen Indonesia had assigned a total capital expenditure of between IDR7trn (US$545.8m) and IDR11trn this year to boost its operations, which includes the takeover of the Vietnamese company.

He said that the firm was now implementing a due diligence audit on the Vietnamese company which would be completed by the end of the first half of 2015. The Vietnamese company is a private firm with a local market share of about four per cent, Ahyanizzaman added.

In 2012, Semen Indonesia acquired a 70 per cent stake in Vietnamese producer Thang Long Cement for US$157m. Its 2.3Mta cement works is situated in the northeastern province of Quang Ninh’s Hoanh Bo district and located near to the Cai Lan deepwater port.