The Kendal Special Economic Zone (SEZ) continues to solidify its reputation as a top-tier investment destination in Indonesia, with the groundbreaking of a major new factory by PT HSG Material Indonesia, a subsidiary of Chinese firm Fujian Hongsheng Material Technology Co., Ltd.

The facility, which broke ground on Sunday, April 27, 2025, marks a significant leap forward for the building materials sector in the region. PT HSG Material Indonesia will focus on producing essential construction materials, including prefabricated pipe piles, square piles, and precast concrete components, aiming to serve both a growing domestic market and promising export opportunities.

With construction slated for completion in the first quarter of 2026, the factory is being built to accommodate substantial output. Annual production targets include 3 million units of precast concrete piles and 150,000 square meters of ready-mix concrete. The plant is also expected to generate employment for approximately 250 workers in its initial phase of operations.

In addition to manufacturing, the company plans to engage in high-volume import and export activities, with an estimated cargo flow of 3,000 to 5,000 tons per day.

Juliani Kusumaningrum, Executive Director of Kendal Industrial Park, welcomed the investment, emphasizing its contribution to the region's industrial ecosystem and local economy.

“This investment strengthens Kendal SEZ’s industrial base and supports regional economic growth by creating jobs, boosting exports, and adding value through domestic manufacturing,” she said, on Wednesday, April 30, 2025

“We are fully committed to ensuring the smooth and successful operation of HSG going forward,” she further adds.

Chairman of Fujian Hongsheng Group, He Bao Ping, highlighted that the plant’s development is aligned with the company’s long-term global strategy. He expressed strong confidence in Indonesia’s economic trajectory, particularly as the nation undergoes rapid development with robust infrastructure expansion.

“Indonesia, especially Central Java, is a strategic hub linking Southeast Asia with the global market,” he said on Wednesday, April 30, 2025.

“We believe the high quality of HSG’s products will contribute positively to Indonesia’s economic growth.”