TEMPO.CO, Jakarta – France-based cement producer PT Holcim Indonesia Tbk (IDX: SMCB) is ready to merge businesses with PT Lafarge Cement Indonesia—formerly known as PT Semen Andalas. The corporate act is a follow-up to a merger plan announced by Holcim's parent company last week.
Andika Lukmana, Holcim Indonesia's deputy corporate secretary, said the global merger between Holcim Ltd. and Lafarge SA is expected to result in a US$1.4 billion worth of synergy within three years.
Holcim Group is currently building an integrated cement plant in Tuban, East Java, with a capacity of 1.6 million tons. The first line of cement grinding plant has started commercial operation in December 2013 and September 2014. The second line is scheduled to operate in the second quarter of 2015.
The company is also building a cement packing plant in Lampung and North Sumatra. The factories are expected to commence operations in the first quarter of 2016.
The combined production capacity of both companies in Indonesia amounted to 13.2 million tons in 2014. Lafarge-Hocim's total production capacity stood at 162.5 million tons in the Asia-Pacific region and 386.5 million tons worldwide.
According to the Indonesian Cement Association, this year's total production capacity of Holcim Indonesia and Semen Andalas is 13.7 million tons.