Excess Supply in Cement Industry Triggers Holcim Sales Decline
By : Ridwan And Aldi Firhand. A | Tuesday, October 31 2017 - 20:14 IWST
INDUSTRY.co.id - Jakarta, The condition of the national cement surplus that has not been resolved, has an impact on the performance of the cement industry in Indonesia, including Holcim Indonesia.
The company saw sales decline by -0.4 percent for the first nine months of this year compared to the same period last year.
Although cement sales volume rose by 5.6 percent to 7 million tons, but excess supply conditions put pressure on prices in the market.
Despite the company's continued efficiency efforts, the market condition affected the company's IDR647 billion loss.
After Idul Fitri, construction and infrastructure sector began to increase along with the accelerated realization of government spending for the construction of toll roads, idges, dams and power plants.
The development has boosted cement consumption growth to 47 million tons by the end of September 2017.
"We appreciate the Government's steps in accelerating development conducted throughout Indonesia," said President Director of PT Holcim Indonesia Tbk, Gary Schutz through a written statement to INDUSTRY.co.id in Jakarta, Tuesday (31/10/2017).
He added that this development will certainly create opportunities to improve the economy further and we (Holcim Indonesia) are very ready to be part of the development solution. particularly large projects and infrastructure and housing development.
According to him, business prospects and market opportunities are currently not only created by the government, but also the private sector where the recovery of the economy can increase people's purchasing power, and business confidence in the future.
Furthermore, Gary revealed, in the first half of this year showed a stagnant condition and a new increase seen in the third quarter of this year.
"In the future, the growth of cement sales is expected to strengthen as the development progresses, although the market will still experience an excess supply," said Gary.