Holcim Indonesia to Start Constructing Tuban Cement Plant in 2011

PT Holcim Indonesia Tbk said that it will start constructing the cement plant in Tuban, East Java in 2011 with a total capacity of up to 1.6 million tons per year, Kontan daily reported. The new cement plant is expected to start commercial operation in 2013
Manager Communication of Holcim, Budi Primawan, said the company will seek bank loans of around US$ 400 million to finance the project. Holcim has delayed the cement plant project for about two years.

Budi said Holcim is negotiating with some local and foreign banks as well as a number of financing companies to finance the project. However, he did not disclose the potential banks..

At present, Holcim Indonesia has two cement factories in Narogong, West Java, and in Cilacap, Central Java. Both factories have total production of 8.3 million tons per year. Holcim secures 14% share of total national cement consumption. Of its cement production, only 10% are supplied to export market.