Holcim Indonesia expects capacity up 12% in 2016

Following the acquisition of PT Lafarge Cement Indonesia, Holcim Indonesia increased its domestic production capacity by 1.6Mta to 15Mta, the company said in a statement.

In addition, the cement producer’s 1.7Mta Tuban 2 cement plant is expected to be operational for its first full year in 2016 after coming online in August last year.

Most of Holcim Indonesia’s production is sold in West Java, Jakarta and Banten, but the acquisition of Lafarge Cement Indonesia and the new works at Tuban will help the company expand its reach in East Java and Sumatra.

In Jan-Mar 2016, Holcim Indonesia sales jumped 24 per cent to IDR2.45trn (US$185m) with volumes increasing by 41 per cent to 2.67Mt. In the country as a whole, sales during the first quarter rose four per cent to 14.4Mt, according to the Indonesia Cement Association. It forecasts full-year demand to grow five per cent to 63Mt.