| SIKA STRENGTHENS SUPPLY CHAIN IN GROWTH MARKET INDONESIA: INAUGURATION OF NEW PLANT IN EAST JAVA
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At
a ceremony held at the beginning of May, representatives of Sika’s
Senior Management and Sika Indonesia inaugurated Gresik Plant in
Surabaya,
the latest manufacturing investment in the second largest city after
the capital, Jakarta.
The new plant will manufacture mortars and concrete admixtures. Sika is
already present in Indonesia with offices and production plants in
Cileungsi, Bogor in West Java, close to Jakarta.
The new manufacturing plant covers the Eastern part of Indonesia with a
distribution focus on Central and Eastern Java as well as Bali, Sulawesi
and Central and East Kalimantan.
Jan Jenisch, CEO of Sika: “One of our strategic goals is the accelerated
build-up of emerging markets, including investment in our supply chain
capacity. Last year, we opened 10 new factories in emerging countries,
with eight more to follow this year. The opening
of the Surabaya plant in Indonesia – one of our most promising emerging
markets – is the first step in the consequent execution of our supply
chain growth strategy in 2014.”
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BOOMING CONSTRUCTION MARKETS IN INDONESIA
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Indonesia,
and in particular Java, has one of the largest population
concentrations in the world. According to the Indonesian Cement
Association,
the national consumption of cement totaled 64 million tons in 2013.
With roughly 38 million tons, Java is absorbing 60% of the total
production volume. Major growth opportunities include the construction
of infrastructure with highways connecting the East
and West of Java, new power plants as well as industrial, commercial
and housing projects.
