KUALA LUMPUR: Cahya Mata Sarawak (CMS)said its new RM190mil cement-grinding plant will help the company prepare for the expected increase in demand for cement, in line with developments in the state over the next 10 years.
“We are doing it because Sarawak is growing.
“As the state and the Sarawak Corridor of Renewable Energy project grow, and as the Samalaju township develops, they are going to need cement.
“Also, the government is building many more hydro dams.
“Some of them, depending on the type of dams, will need cement – so we are preparing ourselves for the future.
“We are not preparing for the next one year, it is for the next 5 to 10 years.
“So we are taking this view,” group CFO Syed Hizam Alsagoff told reporters at the sidelines of the 12th Invest Malaysia (IMKL2016) conference here yesterday.
The company’s cement production capacity is expected to increase by almost 60% to 2.75 million tonnes per annum through its third grinding plant, which was commissioned in December.
The RM190mil plant is located adjacent to the group’s clinker plant in Mambong, Penrissen Road, Sarawak.
The company earlier said that cement demand in Sarawak was growing at between 3% and 4% each year.
On its plans for the company’s proposed RM1bil sukuk programme, he said the company would be channelling a portion of the funds towards financing its 40% stake in the Malaysian Phosphate Additives (Sarawak) Sdn Bhd integrated phosphate complex.
“We are going to use sukuk money as seed investment into this MPA project and the rest is for working capital and others,” he said.
On the Pan Borneo Highway, he said the company would definitely be tendering for one of the 10 packages in the project, but did not reveal which one it would be.