Sarawak s sole cement manufacturer CMS Cement Sdn Bhd, a unit of diversified Cahya Mata Sarawak Bhd, is investing in a third cement grinding plant, which will boost its installed capacity by one million tonne to 2.75 million tonnes per annum for the state's future growth.
Cahya Mata group managing director Datuk Richard Curtis said the plant would be adjacent to CMS Cement's clinker plant in Mambong, Jalan Penrissen near here.
"We are now evaluating tenders for the project. It is expected to be ready by 2016 to support Sarawak's future growth and development," he added at a media briefing here.
He said the new plant, which would be integrated to the clinker plant, would serve the needs of Kuching and its hinterland while the existing plant at Pending here would cater for other towns in Sarawak when the new factory was commissioned.
CMS Cement recorded sales of about 1.67 million tonnes of bulk and bagged cement last year. It supplies both portland cement and masonry cement to 25 dealers statewide.
Curtis said the company's cement sales was estimated to increase to 1.72 million tonnes this year and that the company might import 200,000 tonnes, which was lower than 270,000 tonnes in 2013. Once the third grinding plant was operational, the company would be able to address any production disruptions when one of the plants was shut down for maintenance.
According to Curtis, CMS Cement will invest RM60mil, including on a third bulk cement barge to improve distribution capability, a 4,000-tonne cement silo here to increase storage capacity and an inline packer for the Bintulu grinding plant to beef up capacity for bagged cement.
Meanwhile, CMS Cement announced that it would raise cement prices by between 5% and 9%, effective Feb 17. There would be a two-tier pricing for bulk and bagged cement. Dealers determine the retail prices of cement based on locations and transportation costs.
Curtin said cement production cost had jumped by 14.5% in the past five years as compared with 5.2% increase in cement prices.
