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News Indocement preparing for lower growth in 2019

Indocement preparing for lower growth in 2019

Written by Global Cement staff 10 April 2019
  • Print

Indonesia: Indocement is aiming for 4% growth in sales year-on-year to around US$1.12bn in 2019 due to sluggish cement consumption. This compares to 5% growth in revenue in 2018. The subsidiary of Germany’s HeidelbergCement expects demand to increase in the second half of 2019 following elections, according to the Jakarta Post newspaper. It predicts that cement consumption will be driven by government infrastructure projects and the construction of residential projects and buildings. It plans to spend up to US$70m towards setting up a quarry in West Java and completing new cement terminals.

The cement producer is also preparing to increase its thermal substitution rate with alternative fuels like refuse-derived fuel (RDF). This follows a 50% rise in production costs due to coal in 2018. In September 2018 to agreed to buy 500t of RDF from the West Java government.

Last modified on 10 April 2019
Published in Global Cement News
Tagged under
  • Indonesia
  • Indocement
  • Forecast
  • HeidelbergCement
  • Infrastructure
  • Alternative Fuels
  • Coal
  • Quarry
  • Terminal
  • GCW399

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