(CMS) sees the implementation of the Pan Borneo highway project and Baleh hydroelectric dam project as a major booster to its cement sales.
Group managing director Datuk Richard Curtis said the highway project would require an estimated one million tonnes of cement while the Baleh dam project would need an estimated 300,000 tonnes.
“Demand for the cement from Pan Borneo highway is likely to kick in from 2018 while that of Baleh dam project from 2019,” he told StarBiz after the company AGM here yesterday.
Project delivery partner Lebuhraya Borneo Utara Sdn Bhd has recently awarded 11 work packages under Pan Borneo highway project (phase 1), which cover a total of 746km.
The 1,285MW Baleh dam project, which is underway, will be a 188m high concrete face rockfilled dam to be completed in 2025.
CMS, which is Sarawak’s sole cement manufacturer, has raised its total annual rated cement production capacity by almost 60% to 2.75 million tonnes per annum with the recent commission of its new one-million tonne per annum grinding plant in Mambong near here.
The Sarawak conglomerate owns the first integrated cement plant in Sarawak and Sabah by combining the grinding plant and clinker plant in Mambong. CMS also owns and operate a second and third cement plant in Pending here and Bintulu.
The clinker plant has an annual production capacity of 900,000 tonnes and is able to meet up to 50% of the group’s total clinker demand.
Curtis said CMS had no plan to invest in a second clinker plant as it was now cheaper for the company to import clinker to cater for the needs of the Bintulu cement plant.
“As the current demand for cement is between 1.6 million and 1.8 million tonnes per annum, we have ample reserves. Our priority is (to supply) the Sarawak market and it is our duty as the sole manufacturer to ensure reliability and that the state gets fresh and quality cement,” said Curtis.
He said CMS had attempted to export cement to neighbouring countries but was faced difficulties due to regional oversupply.
From the company’s approved 2017 capital expenditure of RM285mil, Curtis said about RM40mil had been budgeted for a unloader crane project and expansion for the Bintulu cement plant.
He said between RM10mil and RM12mil would be spent to purchase two additional mobile batched premix plants for the Pan Borneo highway project. Last year,the company invested in two similar plants which would be set up in Limbang and Samalaju, Bintulu this year.
The group now owns eight premix plants in major towns with a combined rated capacity of 1,190 tonnes per hour and a 10-tonne per hour asphaltic bitumen batch plant.CMS now command some 60% of the premix and bitumen emulsion markets in Sarawak.
“We are looking to supply concrete products, like piles and culverts, stone aggregrates, ready-mix concrete and road furniture, such as guard rail, for the Pan Borneo highway project.
“We already have some orders of these road construction materials from sub-constructors,” said Curtis.
The group currently owns five quarries, and is involved in the production of crushed aggregates of granite, microtonalite and limestone types of stones.
It plans to invest in a second production line with a crushing plant capacity of 1.3 million tonnes per annum.
The new production line, which is expected to be ready next year, will increase the supply of crushed aggregates to meet the growing market demand.
sabah pan borneo... not related to cms at all right? cms only won 1 package of the sarawak pan borneo project and its the supplier of cement for sarawak pan borneo only right...
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
jordanmaggie61
1,894 posts
Posted by jordanmaggie61 > 2018-08-21 11:09 | Report Abuse
It is time to move..yeah..profit is real ! HAHAHA