JAKARTA - Oversupply conditions are a challenge for the cement industry, not only being pressure, but also being an opportunity to strengthen competitiveness and capacity by entering the international market. PT Semen Indonesia (Persero) Tbk (SIG) collaborates with Taiheiyo Cement Corporation in strategic cooperation through its subsidiary SIG, PT Solusi Bangun Indonesia Tbk (SBI), by developing a dock and production facility at Tuban Factory, East Java as a pondamen to strengthen national exports.
The project, which started in 2022, aims to increase the export capacity of terak and special type cement (type V) to the international market, especially the United States. With an investment value of IDR 1.4 trillion, this project includes a number of developments in dock facilities and factories. One of them is the increase in the capacity of Special Terminals from 15,000 Deadweight Tons (DWT) to 50,000 DWT.
This capacity addition is carried out by building a jetty trestle and a new jetty platform that is connected to the existing jetty. Meanwhile, to support production, this project also includes the construction of facilities such as a blending silo system with a capacity of 8,000 tons, a cyclone silo system with a capacity of 15,000 tons, and a 2 cement silo system each with a capacity of 18,000 tons.
In addition, this project also involves installing transport facilities in the form of a 4.1 km tube conveyor, tripper conveyor, and boat loader with a capacity of 1,000 tons per hour (tph) which functions to send bulk cement from the factory to ships leaning on the dock.
SOE Minister Erick Thohir expressed his appreciation to GIS for its success in establishing a strategic partnership with Taiheiyo Cement Corporation, as well as product innovation, business model, and services that continue to grow, making GIS more competitive and ready to face global challenges in the future.
"Although the challenges in the cement industry are increasingly competitive, GIS is able to adapt and successfully optimize its business processes. The success of the GIS collaboration with Taiheiyo Cement Corporation can be an inspiration for SOEs and business actors in other sectors to increase competitiveness and create sustainable growth opportunities in the international market," said Erick Thohir.
In a joint working visit with Taiheiyo recently, GIS President Director Donny Arsal said the project, which is part of a strategic partnership with Taiheiyo, has entered its final stages and is expected to be completed soon to be ready to operate optimally in the first quarter of 2025. With an export capacity of up to 1 million tons of cement per year, this project will be an important milestone not only in strengthening distribution capacity, but also contributing to the competitiveness of the export market and strengthening the Company's global distribution network.
"This marks the first step in SIG expansion to the United States market, amid increasingly competitive domestic market challenges as well as the oversupply conditions facing the Company. Hopefully this collaboration with Taiheiyo brings optimal results and contributes to the growth of the performance of the two groups. And most importantly, expanding the services of the nation's children in the world," said Donny Arsal.
On the same occasion, President and Representative Director of Taiheiyo Cement Corporation, Yoshifumi Taura expressed his high appreciation to all SIG and SBI teams in this export facility development project. He mentioned that the synergy between the two groups is a win-win solution that not only provides business benefits, but also opens up great opportunities for further development in the cement and construction industry sector.
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"Taiheiyo is committed to strengthening the synergy between the three companies through various strategic initiatives, starting with the development of the dock at the Special Terminal at SBI Tuban Factory, which is an important achievement in our long-term partnership," said Yoshifumi Taura.
Previously, in July 2024, the Company had conducted a Berthing test or ship dock test to ensure the feasibility of the operation of the Special Terminal. This trial aims to assess aspects of porting, shipping safety, and environmental sustainability, which are part of efforts to ensure the sustainability of port operations at this Special Terminal.
President Director of SBI, Asri Mukhtar revealed that from the start, the Tuban Factory had been designed to become an efficient and environmentally friendly cement factory by implementing many of the latest technologies in the cement industry. Tuban factories have been prepared to be able to produce quality products that will be marketed not only in Indonesia, but also to meet export market needs.
"We are targeting that the facilities that will be completed soon will optimize operational asset potentials to increase the economic value needed by the Company to grow and develop, bring benefits to shareholders and all stakeholders," said Asri Mukhtar.
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