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CMSB plans third cement plant

Aug, 07 2012

(Malaysia)  --  Cahya Mata Sarawak Bhd (CMSB) has announced that it plans to invest in a third cement plant in Sarawak.

The new facility, which would have a production capacity of 600,000 to 700,000 tonnes per annum, would be built in Mambong near where the group's clinker plant is located.

“The proposed third plant will cost about RM150mil. We (CMSB) will make a decision (on the proposed project) in the next three months,” Group MD Datuk Richard Curtis said.

CMS Cement, which is wholly-owned by CMSB, is Sarawak's sole cement manufacturer.

The two cement plants of the company have a combined installed capacity of 1.75 million tonnes per annum. CMS's cement plant in Pending Industrial Estate has an installed annual capacity of one million tonnes and caters for Kuching, Samarahan, Sri Aman and Sibu. Its second plant that caters to Sarawak's north-eastern region has an annual capacity of 750,000 tonnes.

The company plans to adopt technology from Europe and China for the proposed plant.

The cement demand in Sarawak grew by 9% to 10% in the past two years due mainly to the construction of Murum hydro dam in Kapit and Bengoh dam near here.

Othman said the plan for a major dam in Baram was also expected to push up demand for cement in the next few years.

“As both Murum and Bengoh are concrete-filled dams, the projects consume a lot of cement. The construction of concrete bridges also drives up the demand for cement,” he said.

 “The estimated year-on-year cement requirement growth is 6% per annum. The (new) demand comes from the development of Sarawak Corridor of Renewable Energy (Score), Samalaju (Industrial Park) and infrastructure projects,” he added.

CMSB also plans to reconsider a proposal mooted three years ago to build a second production line for its clinker plant to increase production in order to cut down on the import of clinker, the main raw material in the manufacture of portland and masonry cement.

“CMS Cement's requirement of clinker is about 1.6 million tonnes per annum. So, we have to import the balance from South Korea, Japan, Taiwan, Vietnam and Thailand to meet the needs,” said Othman.

The existing clinker plant, the only in Sarawak, will increase its production capacity to 896,000 tonnes per annum when a RM78mil upgrading project is completed and commissioned in the next few weeks.

By: Rashmi Kalia (ARI-C NEWS)

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