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Holcim kick-starts production at Tuban 1
Publicly listed cement maker PT Holcim Indonesia announced on Tuesday that it had begun producing cement from its Tuban 1 plant in East Java
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ublicly listed cement maker PT Holcim Indonesia announced on Tuesday that it had begun producing cement from its Tuban 1 plant in East Java.
The operation of the new facility adds 1.7 million tons per annum to the company's total production capacity.
'This new capacity positions Holcim Indonesia in a very favorable position to capture future growth,' Holcim Indonesia CEO Eamon Ginley said in his remarks during the inauguration of the plant, the biggest investment Holcim has ever realized worldwide.
'Particularly in East Java, we expect to double our market share from today's 9 percent to 16 percent.'
The company has disbursed US$800 million to construct the Tuban 1 and Tuban 2 production facilities.
Each of the two factories can produce up to 1.7 million tons of cement per year. Tuban 1's cement mill began operating in October 2013 but it just started production on Tuesday, while Tuban 2 is due to commence operations in the first quarter of 2015.
'The additional 20 percent boost in production from Tuban 1, and a further increase of another 20 percent in capacity that Tuban 2 will bring once it is completed in early 2015, will provide competitive advantages ['¦] with low production costs and close proximity to customers,' Holcim said in a press statement.
Apart from the Tuban facilities, the company and its subsidiaries have a total annual production capacity of 8.2 million tons of cement in Indonesia and another 1.2 million tons in Malaysia.
