PT Semen Indonesia (Persero) Tbk (SMGR) is leveraging the oversupply in the cement industry to strengthen its competitiveness by expanding into international markets. Partnering with Taiheiyo Cement Corporation through its subsidiary PT Solusi Bangun Indonesia Tbk (SBI), the company is finalizing a major development project at its Tuban plant in East Java, Indonesia. The IDR 1.4 trillion investment, initiated in 2022, includes upgrades to the plant’s port and production facilities, aimed at increasing exports of Type V clinker and cement, particularly to the U.S. Enhancements include expanding the Special Terminal's capacity from 15,000 DWT to 50,000 DWT with a new jetty platform and trestle. Production support will feature advanced systems like blending silos (8,000 tons), clinker silos (15,000 tons), and two cement silos (each 18,000 tons). Additionally, a 4.1 km tube conveyor, tripper conveyor, and ship loader with a capacity of 1,000 tons per hour are being installed for efficient cement transport.
Semen Indonesia President Director Donny Arsal highlighted the project’s strategic importance, with export capacity reaching 1 million tons annually. Scheduled for completion in Q1-2025, this initiative will strengthen the company’s distribution capacity and mark its entry into the competitive U.S. market. Taiheiyo Cement’s President, Yoshifumi Taura, praised the collaboration as a win-win solution, advancing the cement and construction industries. A berthing test conducted in July 2024 confirmed the readiness of the port facilities, ensuring operational sustainability. SBI President Director Asri Mukhtar emphasized that the Tuban plant was designed as an eco-friendly, efficient facility equipped with cutting-edge technologies. The new facilities are expected to optimize operational assets, enhance economic value, and contribute to the growth of shareholders and stakeholders.
