Cement Producer Indocement Plans US $320 Investment for New Factories
Indocement Tunggal Prakarsa (INTP), Indonesia's second-largest cement producer, is planning to invest between US $260 and $320 for the establishment of three new cement factories. One of these factories - with a production capacity of 4.4 million ton per year - will be built on brownfield land (in Citeureup, West Java), while the other two will be built on greenfield land and will have a combined production capacity of about five million ton annually.
Indocement is currently also building a cement mill in Citeureup with a production capacity of 1.9 million tons per year.
In Indonesia's cement industry, the company has a market share of about 33 percent. The country's cement industry has shown great growth in recent years and is expected to continue this growth due to a boom in the country's property and infrastructure development. According to data from the Indonesian Cement Association (ASI), cement production in 2012 totaled 60.6 million tonnes, and is expected to increase to 78.5 million by 2016. Domestic cement consumption in Indonesia grew from 55 million ton in 2011 to 59.4 million ton in 2012, and is expected to grow seven to eight percentage points in 2013.
Indocement produces cement products marketed under the brand name "Tiga Roda". In 2001, the German based HeidelbergCement Group became Indocement’s majority shareholder.
Indocement Tunggal Prakarsa Financial Numbers:
| 2009 | 2010 | 2011 | 2012 |
|
| Net Revenue | 10.58 | 11.14 | 13.89 | 17.29 |
| Net Income |
2.75 | 3.23 | 3.60 | 4.76 |
in trillion IDR (rupiah)
Source: Indocement, Annual Report