Semen Indonesia to open new Vietnam cement plant in 2015

Semen Indonesia will next year to set up a new €219.6 million cement plant in Vietnam, according to the Jakarta Post. The new plant will serve the Vietnamese domestic market and export to Myanmar, Laos, Cambodia and Singapore. Construction of the new plant is said by the newspaper to be earmarked to begin in early 2015. It will produce 1.5 million tonnes/cement annually. In a further development at Semen Indonesia, a state-run cement maker, the firm has also reportedly entered into an offtake deal with T
July 1, 2014 Read time: 2 mins

7818 Semen Indonesia will next year to set up a new €219.6 million cement plant in Vietnam, according to the Jakarta Post. The new plant will serve the Vietnamese domestic market and export to Myanmar, Laos, Cambodia and Singapore. Construction of the new plant is said by the newspaper to be earmarked to begin in early 2015. It will produce 1.5 million tonnes/cement annually.

In a further development at Semen Indonesia, a state-run cement maker, the firm has also reportedly entered into an offtake deal with Thang Long Cement Company (TLCC), its unit in Vietnam, to help the latter refinance its debts worth €102.62 million. Under the deal, also reported in the Jakarta Post, Semen Indonesia will be absorbing the output of TLCC to boost the latter's financial position to restructure its debts. Agung Wiharto, corporate secretary of Semen Indonesia, is quoted as saying that TLCC is required to make a payment of €5.12 million in instalments every three months for five years to clear all its debts. He said the existing debts of TLCC would be due in five years. In order to restructure its debts, the Jakarta Post reports that TLCC will be required to export nearly quarter (24.35%) of its yearly production. If TLCC does not meet its quarterly export target, Semen Indonesia would reportedly buy and resell the products of the Vietnamese company. The Semen Indonesia-TLCC deal is said to be for a period of six years.

Concrete Plants, Equipment & Applications Quarry Products

For more information on companies in this article

Related Content

May 29, 2014

Semen Indonesia to complete Bangladesh-Myanmar acquisitions in early-2015

Semen Indonesia will reportedly take at least six months to complete the acquisition of a cement plant in Bangladesh. The Bangladeshi plant will have an estimated annual capacity of 600,000tonnes-1 million tonnes, according to the president director of state-owned cement producer Dwi Soetjipto.
Dwi refused to reveal the value of the Bangladeshi deal but mentioned that it will not cost as much as an earlier deal in Vietnam, where Semen Indonesia spent US$ 157 million to buy a 70% stake in Thang Long Cement

January 19, 2015

Semen Indonesia may terminate Myanmar investment plan

Indonesian state-run cement giant Semen Indonesia may scrap plans to invest in Myanmar if it fails to reach a pricing agreement with its local partner, according to the Jakarta Post.

A move to another Asian country or an alternative partnership with another local firm are said to be possibilities if the prices wanted by the domestic partner are deemed too high. However, Semen Indonesia says talks between both parties are ongoing.

Meanwhile, Indonesia’s president, Joko Widodo, has decreased selling pri

January 11, 2016

Indonesia: cement consumption projected to grow by over 5% in 2016

Indonesia's biggest cement producer Semen Indonesia has projected that for 2016 there will be an over 5% hike in the overall cement consumption in the country.

That would compare with the preceding year, when consumption climbed 1% year-on-year from 59.9 million tonnes.

Driving over half of the nation's economy, cement consumption is one of the main local consumption indicators.

The Indonesian Cement Association highlighted that overall cement consumption between January 2015 and November 2015 grew

boombox1

Highlighted Content

boombox2