Heidelberg Materials via its subsidiary Indocement has signed an agreement to acquire 100% of the shares in PT Semen Grobogan’s integrated cement plant located in Central Java, Indonesia. The plant started commercial production in 2022. With this investment, Heidelberg Materials further strengthens its footprint in Indonesia, one of the company’s core markets in Asia-Pacific. The Semen Grobogan cement plant has 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. The parties have agreed not to disclose the purchase price.
Indonesia is the world’s fourth most populated country. With about 41 million people, Central Java is the third most populated area in Indonesia and has a strong retail cement market. Important infrastructure projects classified as national strategic projects are planned in this area, e.g. the Solo-Yogyakarta, Yogja-Bawen and Semarang-Demak toll road, as well as the Batang industrial area, and the Kendal Special Economic Zone.
The investment in Semen Grobogan will enable Heidelberg Materials to leverage significant synergies with its existing businesses in Indonesia regarding logistics, usage of alternative fuels, as well as transfer of technical and sustainability know-how.
As part of the company's global climate strategy, the new plant will develop a tailored CO₂ roadmap with concrete measures to accelerate the reduction of carbon emissions. Furthermore, the plant’s limestone reserves complement the existing reserves of Indocement in Central Java. Through its subsidiary Indocement, Heidelberg Materials already operates four cement plant complexes with 14 lines in Indonesia, including the Citeureup plant in West Java, which is one of the world’s largest cement plants, and the recent Maros plant under leased arrangement in South Sulawesi.
