Feet not in cement

December 25, 2012 | 08:56

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Indonesia’s biggest cement producer PT Semen Gresik Tbk has acquired Geleximco’s 70 per cent stake in Thang Long Cement.

Although the two parties did not reveal the deal’s value, but the Jakarta Post reported that Semen Gresik acquired a majority stake in Vietnam’s Thang Long Cement for $157 million, in a move to expand the company’s capacity for serving the region’s growing demands.

With the participation of Semen Gresik, Thang Long Cement’s financial capacity will be increased with chartered capital rising to VND4,200 billion ($200 million) from VND1,750 billion ($83 million).

Vu Van Tien, Geleximco chairman, said teaming up with the Indonesian partner was a good foundation for branding development. Tien said Semen Gresik’s move showed that foreign investors were still interested in the Vietnamese market.

Dwi Soetjipto, chairman of Semen Gresik, said the deal was an important milestone in the company’s development strategy, aiming to become the leading cement producer in South East Asia.

“This investment will help us increase our ability to meet increasing demand in Vietnam, as well as to support for the insufficient supply currently in Indonesia,” Soetjipto said. Thang Long Cement is one of the leading cement producers in Vietnam with total capacity of 2.3 million tonnes annually.

Located in Cai Lan deep seaport in Quang Ninh province, the main factory is equipped with advanced technology of Polysius and a miller in Hiep Phuoc Industrial Zone in Ho Chi Minh City.

Founded in 1957, Semen Gresik is the biggest cement producer in Indonesia with the capacity of more than 26 million tonnes per year, occupying more than 40 per cent of the national supply. Its stock market capitalization has reached $9 billion.

By Bich Ngoc

vir.com.vn

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