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Semen Gresik changes name, buys cement plant in Vietnam
Investment in Vietnam: A worker walks along a conveyor belt in the Thang Long cement plant in Quang Ninh, Vietnam
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span class="inline inline-none">Investment in Vietnam: A worker walks along a conveyor belt in the Thang Long cement plant in Quang Ninh, Vietnam. Indonesia’s largest cement producer, PT Semen Gresik, just acquired a 70 percent stake in Thang Long Cement Joint Stock Company in a transaction worth US$157 million. (JP/Indra Harsaputra)
Cement manufacturer PT Semen Gresik (SMGR) says it will change its name to PT Semen Indonesia to reflect its appointment as a holding company for state cement producers.
The name change will likely be formalized during the company’s general shareholders meeting on Dec. 20.
Semen Gresik Group is currently both a cement producer and a holding company for state cement companies PT Semen Padang and PT Semen Tonasa. It holds the largest chunk of the nation’s cement market with a 41 percent market share, followed by PT Indocement Tunggal Perkasa and PT Holcim Indonesia.
Semen Gresik president director Dwi Soetjipto said that Semen Indonesia would serve as a holding company for PT Semen Gresik, PT Semen Padang and PT Semen Tonasa.
However, he added, the new name would apply to the parent company only, while product brands, such as Semen Gresik, Semen Padang and Semen Tonasa, would remain the same.
“Next year, Semen Indonesia will focus on increasing production of Thang Long Cement. After that, we will try to expand our business into Myanmar,” he said on Tuesday.
Semen Gresik signed an agreement in Hanoi on Tuesday to acquire a 70 percent stake in Vietnam’s Thang Long Cement Joint Stock Company from the Hanoi General Export-Import Joint Stock Company (Geleximco).
According to Dwi, the US$157 million acquisition would cement Semen Indonesia’s reputation as an industry player in Asia. “This is one of our strategic moves. By acquiring Thang Long, our firm will be able to meet cement needs in Indonesia and compete overseas.”
Thang Long has around 76 million tons of limestone reserves and annual production of 2.3 million tons of cement, making it the largest cement producer in Vietnam.
The firm owns a factory in Quang Ninh province and a grinding station in Hiep Phuoc Industrial Park in Ho Chi Minh City. The company operates a 4-kilometer-long conveyor belt to carry finished cement products, clinker and coal between the factory and Cai Lan port.
Thang Long plans to open factories in Quang Ninh and Binh Phuoc provinces soon to increase cement production to 6.5 million tons a year, according to the company. The provinces have a combined 200 million tons of raw material reserves to support growing cement needs in Vietnam and Indonesia.
On Myanmar, Dwi said that the firm was currently in talks with local partners to establish joint ventures, with the firm as the majority shareholder.
Semen Gresik can produce up to 23 million tons of cement a year. Between January and September, Semen Gresik and its subsidiaries sold 15.96 million tons of cement on the domestic market, while cement consumption reached 39.47 million tons during the period.
State-Owned Enterprises Minister Dahlan Iskan applauded the acquisition.
“After Semen Gresik, other BUMNs [state-owned enterprises] will follow. PT Timah will acquire a tin mine in Myanmar, while PT Telkom plans to buy shares in one of Timor Leste’s telecommunication firms,” he said during a visit to Thang Long’s plant.
