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Solusi Bangun Indonesia to continue factory network expansion

12 February 2019 01:33 PM  Company: PT. Solusi Bangun Indonesia Tbk[SMCB]
Rp. 1,475  -10 (-0.67%)

JAKARTA. PT Holcim Indonesia Tbk has officially been renamed PT Solusi Bangun Indonesia Tbk (SMCB). The new management under PT Solusi Bangun Indonesia Tbk will also continue to expand the cement factory network domestically and strengthen the business of two subsidiaries in the field of concrete and various products.

The two subsidiaries, namely PT Holcim Beton and PT Lafarge Cement Indonesia have also been officially renamed PT Solusi Bangun Beton and PT Solusi Bangun Andalas.

"We will also strengthen the ready mix business with a variety of products and solutions," said Agung Wiharto, Director of PT Solusi Bangun Indonesia Tbk, Monday (11/2).

As of January 31, 2019, PT Semen Indonesia Tbk has closed the takeover of shares of Holderfin B.V. in Holcim Indonesia. The takeover was carried out by a subsidiary of SMGR, namely PT Semen Indonesia Industri Bangunan (SIBB), with the purchase of 6.18 billion shares (80.64% stake of Holderfin BV) at a price of Rp 2,097 per unit or a total value of Rp 12.95 trillion.

According to Mr Wiharto, after the acquisition by the Semen Indonesia Group, the company will continue to seek efficiency. "Especially now that the national market is still over supply, more or less, around 30% of the current national installed capacity is 110 million tonnes per year," he said.

The existence of SMCB for SMGR is expected to widen the reach of the Semen Indonesia group, especially in areas such as Sumatra and West Java. As one of the largest cement manufacturers in the world, SMGR hopes to be able to adopt a variety of new technologies in creating product variants, especially cement derivatives.

So far, SMCB has not only sold bulk cement and bags, but also provides innovative aggregate and concrete solutions ranging from ready mix to mortar. Currently SMCB has around 30 ready mix plants. Regarding the business of cement derivative products, the average portion is still around 30% for the company's business for SMCB while most of it is 70% of bulk cement and bags.

Although the domestic market is still a priority, the opportunity to increase export sales is very likely. SMGR management sees the potential to hoist export sales. "We expect exports, which last year reached 3 million tonnes. It could be 4 million to 5 million tonnes this year," Mr Wiharto said. (AM/MS)

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PT. Solusi Bangun Indonesia Tbk [SMCB]   Rp. 1,475   -10 (-0.67%)