To Expand the Global Market, SIG Completes the Tuban Port and Export Facility Development Project

Photo: Dok. Semen Indonesia Group (SIG)

JAKARTA - PT Semen Indonesia (Persero) Tbk (SIG) through its subsidiary PT Solusi Bangun Indonesia Tbk, has officially completed the development project of the pier and production facilities at the Tuban Plant, East Java, which was marked by the issuance of the Taking Over Certificate (TOC) which states that the project is substantially acceptable based on the results of the work test, as well as the infrastructure and systems on the project that have met the required technical, safety, and operational readiness standards.

This strategic project worth IDR 1.4 trillion is an important milestone in SIG's transformation in strengthening global market expansion amid the challenges of overcapacity in the domestic market.

The development of facilities in Tuban is designed to meet the demand for exports of special type cement with international class specifications, including an increase in the capacity of the pier from 15,000 DWT to 50,000 DWT, the construction of a new jetty trestle and jetty platform integrated with existing facilities, a ship loader with a capacity of 1,000 tons/hour (tph) for loading and unloading efficiency, an integrated logistics system in the form of a 4.1 km tube conveyor, and a modern storage facility consisting of a blending silo with a capacity of 8,000 tons, a clinker silo with a capacity of 15,000 tons, and 2 cement silos with a capacity of 18,000 tons each.

With this infrastructure, this facility is able to support export capacity of up to 1 million tons of cement per year, while improving the reliability of the supply chain and the efficiency of SIG's global distribution.

SIG President Director, Indrieffouny Indra, said that the completion of this project is a strategic step to increase plant utilization in the midst of a slowing domestic market.

"In addition to expanding the penetration of high-value export markets, the advantages of this portfolio also strengthen SIG's position in the global industry," said Indrieffouny Indra, in a statement, Sunday, May 3.

The project, which is part of a strategic cooperation between SIG (through PT Solusi Bangun Indonesia Tbk) with Taiheiyo Cement Corporation, is also one of the BUMN synergy portfolios with the involvement of PT Hutama Karya as the contractor.

With the readiness of infrastructure and support for global partnerships, SIG is optimistic that it can increase export contributions as a new growth engine and strengthen Indonesia's role in the world's construction industry supply chain.