Etex invests 62 million euro in second factory in Indonesia - 10/07/2014

Press releaseEtex started the construction of a new factory in Karawang, Indonesia. This new production facility, in which approximately 62 million euro will be invested by the end of 2015, will strengthen Etex’s market leader position. By locally producing fibre cement building boards, Etex will be able to fully leverage sales opportunities in the Western Indonesian market.

Indonesia has a population of about 250 million, which is expected to further grow by 7 % in the coming five years. That strong population growth combined with a rising middle class has a positive impact on the housing market and the renovation market, which accounts for 70 % of the construction market. The demand for fibre cement boards, Etex’s products in Indonesia, is growing as opposed to the demand for plywood boards, because of the advantages the products offer and the increasing hard wood price.

Etex has a solid presence in Indonesia, producing calcium silicate building boards and fibre cement corrugated sheets in Eastern Java. This allows the company to cover the most part of Eastern and Central Indonesia. In order to introduce its competitive range of fibre cement building boards in Western Indonesia, Etex is building a new production facility in Karawang. The site should be operational by late 2015, with an estimated workforce of 325 employees.

Strategic location

The new production facility will be located only 32 miles east of Indonesia’s capital Jakarta, connecting it to important road systems and the port of Jakarta. Since the country consists of hundreds of islands, transport and logistics play a crucial role in the local economy. A local presence in Karawang will also allow Etex to target, in Jakarta, the commercial and public contracts market, e.g. apartments, schools, hospitals and public buildings.

Competitive products

“Etex has a long and proven experience in autoclaved fibre cement boards. The factory in Karawang will enable Etex to bring the Kalsi boards to the Western Indonesian market. Kalsi is the premium brand for the building boards,” explains Etex’s CEO, Fons Peeters, “and it is one of our strong local brands, as is Eternit in Belgium or Creaton in Germany.”

Kalsi boards are renowned for their durability and ability to withstand external weathering, humidity, impact, fire and termites. They are used to construct ceilings, façades, roof bases, façade sidings, and in many other applications.

The investment in the new factory in Indonesia follows investments in, among other countries, Belgium, the USA and Japan for the high performance insulation division of Etex, a new factory for plasterboards in Brazil and one for ceramic tiles in Colombia.

Download the press release (pdf 152 kB)

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