Displaying items by tag: Indonesia
Indonesia: Holcim Indonesia has posted a slight dip in its net profit in the first half of 2014, which it attributed to rising costs and a slowdown in the construction and property sectors.
Sales in the first half of 2014 grew by 10% year-on-year to US$426m, stronger than the 7% growth reported for the same period of 2013 when compared to 2012. Despite the sales increase, Holcim fell short of boosting its net profit, which dropped by 3.8% to US$38.1m from US$39.6m in the same period of 2013.
On 1 May 2014, the Indonesian government raised electricity rates by 38.9% or 64.7%, depending on businesses' power needs. The increases, however, will be gradual until the end of 2014. Holcim, which must deal with a 64.7% increase in electricity rates, recorded an increase in costs of sales to US$292m, while its operating costs went up by 15.9% to US$61.6m. In addition, its first half foreign exchange losses surged to US$2.34m, compared with US$871,000 in the same period of 2013.
Holcim has gradually increased its selling prices since late 2013 to mitigate its rising expenses. Along with other industry players, Holcim also had to bear weaker property and construction demand, which saw project delays as a result of legislative and presidential elections, as well as unfavourable regulations and macroeconomic conditions.
Holcim Indonesia's president director Eamon Ginley said that, despite a number of obstacles in 2014, the company was optimistic that it would at least secure a higher annual revenue compared to 2013's figure, assisted by a boost in capacity from its Tuban facilities in East Java. The company has invested US$800m to construct two 1.7Mt/yr capacity cement plants, Tuban 1 and Tuban 2. Tuban 1 began operating in October 2013. Tuban 2 is due to commence operations in the first quarter of 2015.
Indonesia: Semen Indonesia has reported US$1.13bn of revenue in the first half of 2014, a 12.8% year-on-year increase. During the first six months of 2013, revenues grew by 31.9% compared to 2012. The decelerated growth is attributed to reduced domestic demand, which is affecting the Indonesian cement industry as a whole.
Sales volumes in the first half of 2014 grew by 4.6% year-on-year to 12.8Mt. Semen Indonesia's subsidiary, Semen Gresik, contributed almost 54% of the sales volumes. Semen Padang accounted for 26% and Semen Tonasa contributed the remaining 20% of sales volumes. Net profit for the first six months of 2014 stood at US$46.9m, a 9.3% year-on-year increase, while higher expenses and foreign exchange losses contributed to higher costs. Semen Indonesia has forecast an 8% increase in revenue for the whole of 2014.
The latest statistics from the Indonesian Cement Association show a 4% increase in domestic cement consumption in the first half of 2014, lower than the 7.5% growth reported for the first half of 2013.
Indonesia: A new cement plant being built in the Regency of Lebak, Banten Province, is expected to come on stream in 2015. Construction of the plant is already 60% completed. The cement plant, which is owned by PT Cemindo Gemilang, is being built over a 5km2 plot of land and will have a production capacity of 4Mt/yr of cement when it starts operation in 2015. The Regency of Lebak is included in the Master Plan for Acceleration and Expansion of Indonesian Economic Development, an initiative of the Indonesian government.
Indonesia: Siemens has received an order from ThyssenKrupp Industrial Solutions AG to supply an Integrated Drive System for the expansion of PT Holcim Indonesia's cement plant in Java, Indonesia. The new line will have a capacity of 4000/day. Operation is due to commence in mid-2015.
The supplied Integrated Drive System will comprise low- and medium-voltage motors as well as the associated Sinamics and Sinamics Perfect Harmony drives, including the required converter transformers, starters and compensation systems. The supply package contains 14 single-motor and multi-motor drives, 22 induction motors, one slip ring motor for the raw mill main drive and six gear units.
Siemens previously installed complete drive equipment for the first production line at the Tuban plant. Production commenced in October 2013. "By placing the follow-on contract with Siemens, we want to ensure professional project management and the smooth operation of our plant", said Sidik Darusulistyo, plant manager at PT Holcim Indonesia.
One of the ideas aired by several speakers at last week's 6th Brazilian Cement Congress was that using cement as a construction material is inherently a sustainable option.
The reasons for this included the durability of cement's construction products and the role cement plays in improving the living standards of a country. For example, under the onslaught of extreme weather like hurricanes, concrete structures are more likely to remain standing. Or, for a country like Brazil with sections of society living in long-term 'temporary' buildings in its favelas or shanty towns, providing affordable cement to help the country build better housing for its inhabitants is the only sustainable future that could be considered.
Perhaps in line with this concept of cement-as-sustainable-construction-material we see Semen Indonesia this week announcing expansion plans in three countries in South and Southeast Asia.
In West Sumatra a Semen Indonesia subsidiary has started building a 3Mt/yr cement plant in Padang. Then in Bangladesh Semen Indonesia revealed its intention to buy a 1Mt/yr plant. Finally, the state-owned Indonesian cement producer said that its Semen Gresik subsidiary was planning to build a new cement plant in Central Java at Rembang in June 2014. From previous press releases we can see that both new plants are FLSmidth builds. Both orders were announced in early 2014. Each has a capacity of 8000t/day.
The plans to expand outside of Indonesia echo reports that Semen Indonesia was set to buy a minority share in a Myanmar cement producer. Although the producer was unnamed as of early May 2014, Semen Indonesia CEO Dwi Soetjipto valued the stake at US$30m and the producer's production capacity at 1.5Mt/yr in comments to the Jakarta Globe.
Altogether the two new plants in Indonesia will place Semen Indonesia's total cement production capacity at 40Mt/yr by 2017 according to company figures. This would be enough to place the company within the top 20 of the world's largest cement producers by production capacity following the research from Global Cement's 'Top 75 global cement companies'.
In a nice coincidence, the company with a production capacity of 40Mt/yr on that list was Eurocement. Last week the Russian cement producer announced that it had signed contracts worth Euro387m with Chinese companies - including Sinoma, CNB, Sinomach and CAMC Engineering Co - to add 17Mt/yr cement production capacity across six plants in Russia. Another six or seven more construction agreements for cement plants are also expected to be signed in the coming months.
Certainly for the countries Semen Indonesia is focusing on – Indonesia, Bangladesh and Myanmar, with low gross domestic product per capita – providing the raw material for stronger and more durable buildings covers some of the sustainability bases. Yet if all these new plants only use fossil fuels and are subject to few environmental restrictions then that undermines some of this. However, whether all this expansion is sustainable or not, the cement industry never remains stationary.
Indonesia: Loesche has set up a full service hub in Jakarta, Indonesia. The office has been in full operation since January 2014 and focuses on plant modernisation and spare part supply, as well as on site support with all kinds of services for audits, maintenance, installation and commissioning activities in the entire Indonesian region.
Loesche has been present in the Indonesian market for more than 40 years and can now focus on closer client relationships and faster reaction times for the benefit of the local market. A one-day seminar took place in the Le Meridien Hotel in Jakarta on the 27 March 2014, introducing the Group's portfolio and activities. Apart from Indonesian cement producers, a wide audience from the coal mining sector attended. In addition to well-known technology for the cement sector, Loesche also introduced the newly patented coal enhancement process, which attracted much interest, especially as Indonesian miners are looking for a professional solution for coal upgrading.
Indonesia: Holcim Indonesia has delayed the planned merger between two of its units as it is yet to get the go ahead from the stakeholders and the Financial Services Authority. The stakeholders were expected to approve the merger during their annual meeting on 6 May 2014. However, the decision has been postponed until 2 June 2014.
In April 2014 Holcim announced the plan to merge two of its fully-owned cement manufacturing subsidiaries, Bintang Polindo Perkasa and Wahana Transtama, in a bid to improve efficiency. Bintang Polindo Perkasa operates a cement plant with a production capacity of 0.60Mt/yr in Ciwandan, Banten Province, while Wahana Transtama has been inactive since 2006.
Indonesia: Semen Gresik, a subsidiary of Semen Indonesia, will receive a non-cash loan facility worth US$123m from the lender to build a new 3Mt/yr cement plant in Rembang regency, Central Java.
Cement producer PT Semen Gresik, subsidiary of state-owned PT Semen Indonesia, has secured a letter of credit (L/C) facility to help finance the construction of its newest plant. Under the deal, Abdul Rachman, the state lender of Bank Mandiri, agreed to issue L/Cs for Semen Gresik for the next 42 months to support the purchase of machinery or equipment from overseas. The equipment will be used to construct Semen Gresik's new plant in Rembang, Central Java. The plant is worth US$325m and is expected to commence operations in 2016 with a cement production capacity of 3Mt/yr.
The plants will be operated by subsidiary PT Semen Padang and are currently able to produce up to 6.5Mt/yr of cement. "We are looking to increase the annual capacity by 3Mt/yr and the project will need around US$281m in investment," said Semen Indonesia finance director, Ahyanizzaman. "About half of the costs will be financed by our internal funds and the rest by a syndicated loan, led by Mandiri." Supported by the Rembang and Indarung plants, Semen Indonesia's total production capacity will surge to 40Mt/yr by 2017, from the 31.8Mt/yr that has been forecast for 2014.
Indonesia: PT Indocement Tunggal Prakarsa Tbk has predicted that cement demand will increase in 2014. Indocement corporate secretary Sahat Panggabean pinned the prediction on increasing infrastructure and real estate projects in 2014.
In order to meet market demand Indocement is currently building a 4.4Mt/yr cement plant in Citeureup. The company is also in the process of seeking licenses for the two 2.5Mt/yr greenfield cement plants to be built in Central Java and a location outside of Java respectively.
In 2013 Indocement faced increased competition from new cement producers in the market and expanded cement production capacity established producers. Indocement also pointed out to Indonesian news agency Antara that some of the new producers were importing cement into the country from abroad.
Indonesia: Indocement Tunggal Prakasa, Indonesia's second largest cement manufacturer, posted a 5.2% increase in its profit in 2013, reaching US$440m. Its revenue also surged by 8.1% to reach US$1.65bn for 2013. It attributed its improved fortunes to an increase in cement prices. "The company used the good market momentum to increase prices, contributing to the increase in net revenue," said Indocement in a statement. Indocement's cement and clinker sales volumes increased by 1.2% to reach 18.2Mt in 2013.