Saint-Gobain Forms Joint Venture to Expand Construction Chemicals Business in Indonesia
Saint-Gobain has formed a joint venture with Indocement Tunggal Prakarsa's subsidiary in Indonesia, acquiring 60% of Indocement’s Tiga Roda mortars business. This strategic move combines Saint-Gobain’s Cipta Mortar Utama (CMU) operations with Tiga Roda's products and Indocement's local market expertise. The JV aims to enhance product offerings, expand geographic reach, and accelerate growth in Indonesia’s construction chemicals sector, aligning with Saint-Gobain’s global “Lead & Grow” strategy for market consolidation.
Saint-Gobain has significantly strengthened its position in Indonesia's construction chemicals market through a new joint venture with a subsidiary of Indocement Tunggal Prakarsa. In this partnership, Saint-Gobain will hold a 60% stake, acquiring Indocement's well-established mortars business, which operates under the Tiga Roda brand. Indocement will retain the remaining 40% of the new entity. The Tiga Roda business, known for its white skim coat and projected to achieve nearly €20 million in sales by 2025, features three production lines and will complement Saint-Gobain's existing mortars operations, Cipta Mortar Utama (CMU).This strategic alliance is designed to leverage the synergistic strengths of both companies. Saint-Gobain’s CMU currently leads the local mortars market with eight production lines, a broad product portfolio, and extensive distribution through nearly 30,000 points of sale. By integrating Tiga Roda’s product offerings with Saint-Gobain’s technical expertise and Indocement’s deep local market knowledge and cement manufacturing capabilities, the joint venture aims to enhance its product range, expand its geographic footprint, and strengthen customer engagement across Indonesia. Saint-Gobain has a long-standing presence in Indonesia since 1995, managing 14 production lines and employing approximately 1,300 people, further bolstered by its broader construction chemicals portfolio including GCP and FOSROC.This acquisition aligns perfectly with Saint-Gobain’s “Lead & Grow” plan, reinforcing its global strategy to strengthen its construction chemicals presence, particularly in high-growth markets such as Indonesia. The partnership underscores Saint-Gobain's commitment to long-term growth through strategic alliances and market consolidation, positioning the newly formed JV for accelerated growth within Indonesia's promising mortars sector.
