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Revealed: Heidelberg Materials’ Indonesian expansion

Heidelberg Materials

Heidelberg Materials has revealed its next steps in Indonesia, that it has identified as a ‘core market’.  

Heidelberg, via its subsidiary Indocement, acquired an integrated cement plant in Central Java from PT Semen Grobogan.  

It comes as the country looks to complete national strategic projects in the area, including the Solo-Yogyakarta, Yogja-Bawen and Semarang-Demak toll road, the Batang industrial area, and the Kendal Special Economic Zone. 

The plant was established in 2022 with a capacity of 1.8 million tonnes of clinker and 2.5 million tonnes of cement with limestone reserves lasting for more than 50 years.  

While the purchase price is undisclosed, Heidelberg Materials Dr Dominik von Achten said the acquisition underlined Indonesia as a core market in the Asia-Pacific.  

“Heidelberg Materials has been active in Indonesia for more than 20 years. With this investment, we are now strengthening our presence in one of the most populated regions in Indonesia, where we expect further market growth driven by the growing retail market, developing industrial areas, and major infrastructure projects,” he said. 

“As frontrunners of decarbonisation in the emerging markets, we continue to drive our ambitious carbon reduction targets at all our sites in Indonesia, including the new cement plant.” 

Indonesia is the world’s fourth most populous country. The cement plant is located in Central Java, which has around 41 million people to is the third most populous area in the country.  

The Central Java acquisition adds to the company’s four existing cement plants, including Citeureup plant in West Java, which is one of the world’s largest cement plants. It also operates the Maros plant under leased arrangement in South Sulawesi. 

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