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Construction materials

We finance facilities for the construction materials industry – for example cement plants and wood processing facilities.

Financing case Tuban 2: A cement plant in Indonesia

One example of our support for German exports is the financing provided for a cement plant in Indonesia. In the north-eastern part of Java island, KfW IPEX-Bank and BNP Paribas are providing a USD 98 million loan for the construction of the Tuban 2 facility.

Both the design and the engineering of the new cement production line as well as the delivery of machinery and equipment come from ThyssenKrupp Resource Technologies GmbH, the subsidiary firm of Essen-based ThyssenKrupp AG. The "Tuban 1" facility at the same location is based on their know-how and technology. Financing for this project had been structured and provided by KfW IPEX-Bank and BNP Paribas in 2011.

Growing demand for cement

The investor is PT Holcim Indonesia Tbk (HI), a subsidiary of Swiss company Holcim Ltd. based in Zurich. Tuban 2 is the response of the country's leading cement manufacturer to the rapid increase in demand for this important construction material in Indonesia.

HI wants to use Tuban 2 to double its production capacities in Tuban to 3.4 million tonnes of cement per year. Together with its other three production facilities in Indonesia and Malaysia, HI will then command an annual cement production volume of 13.7 million tonnes per year. The construction work for Tuban 2 began in late 2013.

Financing of Tuban 2 at a glance:

Project profile
  • Total investment: USD 315 million
  • Loan volume: USD 98 million
  • Term: 7.5 years
Contribution of KfW IPEX-Bank
  • Loan secured with an export guarantee of the Federal Republic of Germany
  • Use of KfW's ERP Export Financing Programme with a fixed rate based on the CIRR