The Jakarta Post
French mortar producer Saint Gobain Group hopes to boost sales in Sumatra following the opening on Tuesday of its factory in Medan, North Sumatra.
The new facility, built with an investment of 9 million euro (US$104.7 million) from its subsidiary PT Cipta Mortar Utama, is set to produce 180,000 tons of premixed mortar each year.
Javier Gimeno, Saint Gobain general delegate for the Asia-Pacific region, said that although the use of mortar in Sumatra had not been significant, the firm considered the island its most rapidly growing market.
“Last year, our mortar sales in Indonesia reached €80 million and this year, we hope sales will increase to €100 million. We [expect] that the figure will surge by 5.7 percent next year,” Gimeno said during the factory’s inauguration.
Saint Gobain expected the new factory to contribute to its mortar sales starting from next year, he added. At present, Cipta Mortar Utama runs two mortar factories in Jakarta and Gresik, East Java.
Special staff to the industry minister, Happy Bone Zulkarnaen, said during the event that the new facility would help Indonesia reduce mortar imports.
“We appreciate Cipta Mortar Utama’s move to raise its production capacity in Indonesia and its plan to build some new factories in several locations until 2020,” he said. (lnd)