The Swiss cement group LafargeHolcim is withdrawing from Indonesia. World Market Manager sells its 80.6 percent in Holcim Indonesia to local building material manufacturer Semen Indonesia, announced LafargeHolcim on Monday evening. Including debt, the value of the business is $ 1.75 billion. Holcim Indonesia operates four cement plants, 33 finished concrete plants and two quarries and is number three in the Asian country. The German HeidelbergCement had also been interested in parts of the Indonesian operation of LafargeHolcim.
As part of the announced restructuring in March, CEO Jan Jenisch wants to focus on fewer markets. At the first quarter of 2019, at least two billion francs should be generated. LafargeHolcim takes this step one step closer to the sale of Indonesia's operations. The proceeds from the transaction, the company would use to reduce debt. Termination of the transaction is subject to regulatory approval.
(Reuters / mbu)