SCIB to spend RM6mil on new factory

  • Business
  • Monday, 11 Jan 2016

KUCHING: Sarawak Consolidated Industries Bhd (SCIB) will invest some RM6mil on a new manufacturing plant to produce specific precast concrete products for the Pan Borneo Highway project.

Group chief executive officer Zaidi Ahmad said the proposed plant, which would be located adjacent to the company’s existing factory in Demak Laut Industrial Park here, would also cater for the infrastructure requirements of Sarawak Energy Bhd’s (SEB) new transmission line and sub-station projects.

“The proposed new manufacturing facilities are expected to be ready by June this year,” he told StarBiz.

SCIB is Sarawak’s leading manufacturer of precast concrete products, whose comprehensive range includes foundation piles to beams, concrete pipes to hollow core slabs, spuns and square piles to box culverts and U-drains.

The group currently has a production capacity of 200,000 tonnes a year of precast concrete products and precast concrete industrialised building system (IBS) products.

Zaidi said SCIB had secured contracts worth about RM10mil to supply precast concrete products to the first two work packages of Pan Borneo Highway project.

The first package is a 43km stretch from Nyabau in Bintulu to Bakun, Kapit Division while the second is the proposed RM700mil Telok Melano-Sematan stretch in Lundu district.

SCIB started supplying the precast concrete products to this highway project three months ago.

According to Works Minister Datuk Fadillah Yusof, 11 more packages would be tendered out in stages this year. The next work package, expected to be launched later this month, is a 73km stretch from Serian in Samarahan Division to Pantu in Sri Aman Division in the southern region.The packages would incorporate rest and service areas for motorists, lay-bys and interchanges.

Lebuhraya Borneo Utara (LBU) is the Federal Government’s appointed project delivery partner to design, implement, supervise and manage the development and upgrading of 764 km of roads in Sarawak under the highway project.

Zaidi said SCIB foresaw big potentials in securing more supply contracts for the remaining work packages of the highway project as these are being tendered out.

The company estimates to get at least RM30mil worth of supply contracts from the project.

Besides the highway project, he said the company was focussing on securing the supply of more precast concrete products, like foundation piles, to SEB’s projects.

The state utility body’s on-going major projects include the RM1.2bil 500kV transmission backbone project extending some 500km from Similajau in Bintulu Division to Tondong in Kuching Division. SEB is also building a series of new power substations in various divisions in stages.

Zaidi said SCIB, which pioneered the precast concrete industrialised building system (IBS) in Sarawak a decade ago, was eyeing for contracts from the Education Ministry which had decided to use the IBS for schools’ upgrading projects.

Last week, Prime Minister Datuk Seri Najib Tun Razak said six schools in Sarawak would undergo facelift and upgrading works using the IBS, which is deemed to be fast and cost-effective.

The schools are SK Pulau Seduku, SMK Sebuyau, SK Nangka Pua, SK Kampung Tanam, SK Kulok Pusa and SK Abang Man Simunjan.

Zaidi, who was “excited” over the latest government’s move, said: “SCIB is ever ready to be part of the government’s initiative to promote the IBS. With Government support, we can increase our production capacity.”

SCIB had invested close to RM40mil in IBS manufacturing facilities,including RM4mil in the installation of two additional production lines two years ago. The company’s key products are precast concrete floors, columns, beams and walls.

Besides time saving,he said other advantages of the IBS was quality control as its components were manufactured in the factory and that their installation would not cause disruption to the area as compared to in-situ construction.

“By using the IBS,it helps to address the labour shortage problem and we need not have to rely on foreign workers.”

According to Zaidi, five mini public libraries in Kuching were built using the IBS and it took barely two months to complete the projects.

He said the private sector was increasingly using the IBS for their projects and that SCIB had supplied precast concrete IBS components for the construction of several big shopping mall projects in the city.

Currently, the company is also supplying the IBS products to the 300-bed Petra Jaya hospital project here.

“We are looking to increase the contribution of IBS segment to our group’s sales to 50% from the current 30%,” he added.

Zaidi said SCIB was targeting a 25% growth in the sales of precast concrete products, IBS products and roof tiles to RM84mil this year from RM67mil in 2015.

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