KUALA LUMPUR: Cahya Mata Sarawak Bhd (CMS) is looking at doubling its current cement division’s production at the Bintulu grinding plant, according to sources, as the conglomerate plans to ride on the construction of Indonesia’s new capital Nusantara.
The Bintulu grinding plant in Sarawak has an annual production capacity of 750,000 tonnes.
“The group is also talking to certain parties about joint ventures and partnerships in Indonesia,” sources told StarBiz, adding that CMS has contacted Bintulu Port Holdings Bhd on the port’s ability to handle the extra capacity.
Indonesia President Joko Widodo had said early construction of Nusantara is underway, signalling some progress in the US$32bil (RM142.34bil) project, according to a Reuters report in June.
The mega project would see Indonesia move its capital from Jakarta to an underdeveloped area on Borneo island.
Based on its annual report last year, the conglomerate’s core businesses included cement, construction materials and trading, construction, road maintenance and property development as well as strategic investments which centred on export-oriented industries within the Sarawak Corridor of Renewable Energy and also the telecommunications industry.
The group’s cement division encompassed CMS Cement Sdn Bhd, CMS Cement Industries Sdn Bhd and CMS Concrete Products Sdn Bhd and it is Sarawak’s sole cement and clinker manufacturer.
The cement plants are the Mambong integrated plant, and grinding plants in Pending and Bintulu and their combined annual production capacity for cement is 2.75 million tonnes.
Sources also said CMS was also looking at riding on the increasing demand for phosphate products, via its stake in subsidiary Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPAS) which is the first integrated phosphate complex in Malaysia. It is located opposite the Samalaju Port in Samalaju Industrial Park.
The first phase will feature three plants namely the yellow phosphorus, technical phosphoric acid and food grade phosphoric acid plants with an annual capacity of 48,000, 75,000 and 60,000 tonnes respectively.
According to CMS, the commissioning of the MPAS complex had been delayed throughout 2021 due to the commissioning issues, pandemic, unavailability of foreign workers and supply chain disruptions.
The integrated phosphate complex was due to see commissioning and trial operations of its furnaces by mid-2022, and it will produce a range of phosphate products including food, animal feed and fertiliser phosphates as well as ammonia and coke.