Indocement to Complete its Palembang Cement Terminal Project Soon
Indonesia's second-biggest cement producer Indocement Tunggal Prakarsa will start operating its new cement terminal in Palembang (South Sumatra) in the first quarter of 2018. This terminal will strengthen the company's sales of bulk cement on the island of Sumatra, the second-largest cement consumer in Indonesia.
Antonius Marcos, Corporate Secretary at Indocement Tunggal Prakarsa (Indocement), said construction of the company's new cement terminal in Palembang is now in the final stage and therefore project commissioning is scheduled for March 2018. Barring any unforeseen problem, the new terminal can start contributing to Indocement's earnings from March onward.
When completed the new terminal will have a capacity to handle 1 million tons of cement per year. With this terminal, Indocement can now tap the bulk cement market on Sumatra and this will significantly contribute to the company's earnings, Marcos said.
Read also: Cost Efficiency High on the Agenda of Indonesia's Cement Producers
In December 2017 Indocement started fully operating its C14 cement plant in Citeureup (Bogor, West Java) with an installed production capacity of 4.4 million tons per year. Thus, Indocement's total production capacity has now reached 25 tons (per year). However, actual utilization of production capacity is only estimated at 75 percent because there exists a great supply glut on the domestic market, while Indonesia's cement exports are still rather insignificant (albeit growing sharply).
Amid fierce competition in Indonesia's cement industry, cement prices have fallen and therefore Indocement did not achieve its own 2017 revenue target. The board wanted the company's sales to grow by 6-7 percent in 2017. However, actual sales have not changed much from sales in the preceding year (in full-year 2016 the company recorded IDR 15.36 trillion or approx. USD $1.1 billion worth of sales). Within the next couple of weeks Indocement will release its official 2017 corporate earnings.
Read more: Indonesia's Domestic Cement Sales Increased 7.8% in 2017
On Wednesday (24/01) shares of Indocement, traded on the Indonesia Stock Exchange, fell 1.50 percent to IDR 21,375 a piece. So far this year its shares have fallen 2.62 percent.
Stock Quote Indocement Tunggal Prakarsa - INTP: