SIG launches Tuban export facility, targets U.S. cement market

By Romel S. Gurky

State cement producer PT Semen Indonesia (Persero) Tbk (SIG) (IDX: SMGR) has inaugurated a new export production and terminal facility in Tuban, East Java, as the state-owned cement producer seeks to expand overseas sales and improve plant utilization amid persistent overcapacity in Indonesia's cement industry.

The facility, which has an export capacity of up to 1 million tonnes of cement annually, will serve as SIG's main export hub and support a strategic partnership between subsidiary PT Solusi Bangun Indonesia Tbk and Japan's Taiheiyo Cement Corporation.

SIG is targeting exports of 450,000 metric tons of specialty cement to the United States in 2026, betting on strong demand in one of its key overseas markets.

President Director Indrieffouny Indra said the facility marks an important step in creating new growth opportunities and strengthening Indonesia's position in the global building materials supply chain.

The export terminal can accommodate vessels of up to 50,000 deadweight tonnes (DWT) and is equipped with a 4.1-kilometer tube conveyor, tripper conveyor, and a ship loader capable of handling 1,000 tonnes per hour. Supporting infrastructure includes an 8,000-ton blending silo, a 15,000-ton clinker silo, and two 18,000-ton cement silos.

SIG said expanding exports has become increasingly important as domestic cement production capacity continues to exceed local demand, prompting producers to seek growth opportunities in international markets.

Editing by Alexander Ginting