Holcim, Mortar join forces to expand horizons

JAKARTA (Jakarta Post) : The third largest cement manufacturer in the country, PT Holcim Indonesia, signed a cooperation agreement Friday with local instant cement manufacturer PT Cipta Mortar Utama.

"We've had a long relationship with Mortar and with this co-branding cooperation I hope we can expand our markets by combining our distribution networks," Holcim president director Tim Mackay said before signing the agreement.

Mortar generally focuses on commercial construction projects, such as the Ritz Carlton and ITC Permata Hijau, while Holcim mainly works in the country's retail sector, especially on housing projects.

Mortar's general marketing manager Jun Suryo Wardhana said the instant cement market was still small in Indonesia, making up only 20 percent of the country's entire cement market.

The primary components in instant cement include silica sand, cement and filler.

Jun said one of the benefits of using instant cement was that people did not have to add sand.

Holcim's production capacity currently stands at 7.9 million tons per year, while Mortar's annual capacity is 600,000 tons.

The Indonesian Association of Cement Producers (ASI) said domestic cement consumption rose last year by 6.6 percent to 34.17 million tons from 32.05 million tons in 2006. (ndr)