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News Indonesia

Displaying items by tag: Indonesia

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Solusi Bangun Indonesia orders two silos from Claudius Peters

18 January 2023

Indonesia: Solusi Bangun Indonesia (SBI) has ordered two EC22 cement silos from Germany-based Claudius Peters. The silos have a volume of approx. 17,200m3 and will be installed by contractor PT Hutama Karaya (Persero). The scope of supply includes all process equipment for the silos from conveyors to filters.

SBI is a subsidiary of Semen Indonesia Group. It is expanding the export capacity of its integrated cement plant at Tuban by building a new terminal. The group has a cement production capacity of 65Mt/yr.

Published in Global Cement News
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Semen Indonesia restructures to increase stake in Solusi Bangun Indonesia

04 January 2023

Indonesia: State-owned Semen Indonesia has expanded its stake in subsidiary Solusi Bangun Indonesia to 84%. The group acquired the new Solusi Bangun Indonesia shares from another cement subsidiary, Semen Indonesia Industri Bangunan.

Solusi Bangun Indonesia’s four cement plants in Java and Aceh command 14.8Mt/yr-worth of production capacity and employ 2400 people.

Published in Global Cement News
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Semen Tonasa orders a palletiser from Beumer Group

30 November 2022

Indonesia: Germany-based Beumer Group says that it has secured a contract with Semen Tonasa to supply its 40 - 50kg bag palletising system for the producer's Celukan Bawang cement plant in Bali. The system's multi-programme interface offers custom adjustment between all common packing patterns. Commissioning is scheduled for mid-late 2023.

Beumer Group said "Global influences such as delivery bottlenecks, shortages of raw materials and logistics problems continue to massively disrupt the supply chains. Nevertheless, the system provider will be able to send the machine to the customer in seven months. The target is to install and commission the machine in the third quarter of 2022."

Published in Global Cement News
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Semen Indonesia’s sales revenue falls slightly so far in 2022

10 November 2022

Indonesia: Semen Indonesia’s revenue fell slightly to US$1.61bn in the first nine months of 2022. Its total sales volumes of cement fell by 13% year-on-year to 26.2Mt from 30Mt in the same period in 2021. Domestic and regional sales fell by 6% to 21.9Mt and by 37% to 4.3Mt respectively. The group’s earnings before interest, taxation, depreciation and amortisation (EBIDTA) rose slightly to US$365m. It said that its cost of goods rose by 1.6% to US$1.14bn, driven by a 12% increase in fuel and energy costs. It added that its coal purchase price increased by 42% in the reporting period but that the company managed to secure its coal supply in the second and third quarter of 2022 at the local Domestic Market Obligation capped price.

Published in Global Cement News
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Bruks Siwertell to supply ship loader to Solusi Bangun Indonesia’s terminal in Tuban

10 November 2022

Indonesia: Solusi Bangun Indonesia has ordered a Siwertell screw-type ship loader from Sweden-based Bruks Siwertell via contractor Hutama Karaya (Persero). The ship loader will be used at Solusi Bangun Indonesia’s Tuban terminal in Java. The HST 1000 1B-type ship loader has a continuous cement handling capacity of 1000t/hr and can load either open-hatched or conventional bulk carriers up to 50,000dwt. It will be assembled on site and is planned for delivery at the end of 2023.

Solusi Bangun Indonesia, a subsidiary of Semen Indonesia, has a cement production capacity of 15Mt/yr. It operates one cement plant on Sumatra and three on Java in Narogong, Cilacap and Tuban. The Tuban site is Solusi Bangun Indonesia’s first new terminal construction.

Published in Global Cement News
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Semen Indonesia focuses on domestic market in first half of 2022

05 September 2022

Indonesia: Semen Indonesia Group has focused on the domestic cement market in the first half of 2022 due to the better availability of coal supplies. Its revenue fell by 2.1% year-on-year to US$1.07bn in the first half of 2022 from US$1.09bn in the same period in 2021. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) remained stable at US$237m. Overall sales volumes of cement dropped by 12% to 17Mt from 19.3Mt. However, domestic sales volumes fell by 2.6% to 14Mt but overseas sales fell by 39% to 3Mt. The group also raised its prices twice in the reporting period to further shore up revenue.

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Indonesian cement demand forecast to rise by 33% from start of Nusantara construction

03 August 2022

Indonesia: A Bandung Institute of Technology (ITB) academic has estimated a 33% rise in Indonesian cement consumption to 84Mt/yr from the start of construction of the country's planned new capital city, Nusantara, and for the following 20 years during which the city is under construction. National coal consumption is forecast to rise accordingly, by 9% to 126.5Mt/yr. Mongabay News has reported that the Indonesian government has more than tripled the coal domestic market obligation for cement production to 15Mt/yr in 2022 - 2025, from 4.5Mt in 2021.

The site of Nusantara sits on the present border between North Penajam Paser and Kutai Kartanegara districts. Construction of the city's upcoming government district is beginning in August 2022. 100,000 workers will be engaged in the first phase of construction. A researcher at Beihang University, China, has reportedly estimated that the eventual 10m people-strong city will consume 60Mt of cement for residential construction alone.

Published in Global Cement News
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Siam Cement Group increases first half sales in 2022

27 July 2022

Thailand: Siam Cement Group (SCG) recorded sales of US$8.29bn in the first half of 2022, up by 19% year-on-year from US$6.95bn in the first half of 2021. Cement and building materials revenues were US$2.82bn, 34% of total sales, up by 12% from US$2.52bn in the first half of 2021. The group’s earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 24% to US$1.15bn from US$1.51bn.

SCG recorded domestic declines in demand for cement and ready-mix concrete of 5% and 7% respectively in the first half of 2022. Cement demand also fell by 10% in Cambodia and by 2% in Myanmar, but rose by 5% in Indonesia and by 1% in Vietnam. In Thailand, SCG expects cement demand to “improve” in the third quarter of 2022, but noted the possible mitigating impact of rising inflation.

Published in Global Cement News
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Cahya Mata Sarawak rejects Bintulu grinding plant expansion rumours

22 July 2022

Malaysia: Cahya Mata Sarawak says that it has no plan to double the capacity of its Bintulu, Sarawak, grinding plant, Reuters News has reported. The company, however, noted the potential ‘opportunity’ offered by the construction of a new Indonesian capital in Nusantara, East Kalimantan, on the opposite side of Borneo.

Published in Global Cement News
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Building CO2 infrastructure in Europe

20 July 2022

It’s been a good week for carbon capture projects in Europe with the announcement of who the European Union (EU) has selected for a grant from its Innovation Fund. 17 large-scale projects have been pre-selected for the Euro1.8bn being doled out in the second round of awards. On the cement and lime sector side there are four projects. These include projects at Holcim’s Lägerdorf cement plant in Germany, HeidelbergCement’s Devnya Cement plant in Bulgaria, Holcim’s Kujawy plant in Poland and Lhoist’s Chaux et Dolomites du Boulonnais lime plant in France. Large-scale in this instance means projects with capital costs over Euro7.5m. To give readers some sense of the scale of the projects that the EU has agreed to pay for, if the funding was shared out equally between the current bunch, it would be a little over Euro100m per project. This is serious money.

Devnya Cement’s ANRAV carbon capture, utilisation and storage (CCUS) project in Bulgaria has received little public attention so far so we’ll look a little more closely at this one first. No obvious information is available on what capture technology might be in consideration at the plant. HeidelbergCement’s leading experience in carbon capture technology at cement plants gives it a variety of methods it could use from a solvent scrubbing route to something less common. What the company has said is that, subject to regulatory approval and permitting, the project could start to capture 0.8Mt/yr of CO2 from 2028.

What has also been revealed is that the project is linking up via pipelines to a depleted part of the Galata gas field site in the Black Sea. Oil and gas company Petroceltic Bulgaria is a partner and the aim of the project is to start a CCUS cluster in Eastern Europe. with the potential for other capture sites in Romania and Egypt to join in. This is noteworthy because much of the focus for the burgeoning cement sector CCUS in Europe so far has been on usage on local industrial clusters or storage in the North Sea.

The other new one is the Go4ECOPlanet project at Holcim’s Kujawy plant in Poland. Lafarge Cement is working with Air Liquide on the project. The latter will be providing its Cryocap FG adsorption and cryogenics technology for direct capture of flue gas at the plant. The transportation of the CO2 is also interesting here as it will be by train not pipeline. Liquid CO2 will be despatched to a terminal in Gdańsk, then transferred to ships before being pumped down into a storage field under the North Sea.

Turning to the other two grant recipients, the Carbon2Business project plans to capture over 1Mt/yr of CO2 using a second generation oxyfuel process at Holcim Deutschland’s Lägerdorf cement plant. This project is part of a larger regional hydrogen usage cluster so the captured CO2 will be used to manufacture methanol in combination with the hydrogen. Finally, Lhoist’s project at a lime plant in France is another team-up with Air Liquide, again using the latter’s Cryocap technology. The capture CO2 will be transported by shared pipeline to a hub near Dunkirk and then stored beneath the North Sea as part of the D'Artagnan initiative. Around 0.61Mt/yr of CO2 is expected to be sequestered.

The key point to consider from all of the above is that all of these projects are clear about what is happening to the CO2 after capture. The days of ‘carbon capture and something’ have thankfully been left behind. CO2 transportation infrastructure is either being used or built and these cement plants will be feeding into it. This will inevitably lead to questions about whether all these new CO2 networks can support themselves with or without EU funding but that is an argument for another day.

Finally, in other news, four residents from the Indonesian island of Pulau Pari started legal proceedings against Holcim last week for alleged damages caused by climate change. Industrial CO2 emissions are unquestionably a cause of this along with other sources but what a court might think about this remains to be seen. Yet, it is intriguing that the plantiffs have decided to go after the 47th largest corporate emitter rather than, say, one of the top 10. Regardless of how far the islanders get this is likely not to be last such similar attempt. If the case does make it to court though it seems likely that Holcim will mention its work on CCUS such as the two projects above. Only another 200-odd cement plants in Europe to go.

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