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Semen Indonesia secures $220m investment from Japan
State-owned cement producer PT Semen Indonesia has reached a US$220 million deal to establish a strategic partnership.
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A factory of state-owned cement manufacturer PT Semen Indonesia in Rembang, Central Java.
(tribunjateng/Yayan Isro Roziki)
S
tate-owned PT Semen Indonesia, the country’s biggest cement producer, has reached a multimillion dollar deal to establish a strategic partnership in expanding its market reach worldwide.
Under the deal, Japanese cement producer Taiheiyo Cement Corporation is to invest US$220 million for a 15.04 percent stake in Semen Indonesia subsidiary, publicly listed PT Solusi Bangun Indonesia (SBI), through a rights issue.
Semen Indonesia business strategy and business development director Fadjar Judisiawan said the investment and partnership would help the company develop its products and expand its market reach to Africa, Australia and China.
“We are exploring opportunities in other countries,” he said at a press briefing on Wednesday as reported by Kontan.co.id.
In the initial stage of the partnership, Taiheiyo and Semen Indonesia will export roughly 500,000 tons of cement to the United States per year. The latter company expects to eventually raise export volumes up to 1 million tons a year.
The strategic partnership comes as Taiheiyo seeks to enter emerging markets as it expects infrastructure development and rapid urbanization in such markets to boost long-term cement demand.
Semen Indonesia and Taiheiyo signed a memorandum of understanding on the partnership on Apr. 21 last year.
