Cahya Mata may spend big on new clinker line

PETALING JAYA: Cahya Mata Sarawak Bhd (CMS), the state's largest cement and clinker maker, is expected to make significant investments to build a new clinker line and increase its cement capacity given the pent-up demand for the product.

CMS, through subsidiary Cahya Mata Cement Sdn Bhd, today signed technical consultancy agreements with Sinoma Industry Engineering (M) Sdn Bhd to carry out a thorough study and technical analysis for the plan.

CMS group chairman General Tan Sri Dr. Mohd Zahidi Zainuddin said the agreements demonstrated its continual commitment towards the development of Sarawak, as its business represents an integral and vital part of the construction supply chain.

"We are confident about our venture for our cement business due to our partnership with a globally reputable company such as Sinoma Industry, which has vast industry experience and technical expertise in the development of cement plants across the globe.

"The new Clinker Line 2 will provide us with adequate reserve production capacity to materially reduce the risk of supply disruptions, provide additional gateways to nearby export markets, and give us the capability to produce multiple types of cement. Furthermore, this timely expansion would further improve the group's operational efficiency as a whole," he said.

Cahya Mata Cement offers high quality and reliable cement for ready-mix and precast concrete products.

It was established in 1974 and began production in 1978, operating Borneo's first cement grinding plant at the Pending Industrial Estate, Kuching with its aim to support the development of the construction and housing industry in Sarawak.

The technical assessment and studies undertaken by Sinoma Industry are projected to optimise the manufacturing capabilities at Cahya Mata Cement's existing Mambong Line 1 and ensure the success of the turnkey project for Clinker Line 2.

For Mambong Line 1, Sinoma Industry will provide technical study and assessment focusing on technology sharing and transfer of technical know-how, aimed at enhancing process efficiency and cost-effectiveness of Mambong Line 1 operations and maintenance.

This study will enable Cahya Mata Cement to implement targeted operational initiatives to optimise the production and manufacturing output of Mambong Line 1. 

Sinoma Industry's study will also provide Cahya Mata Cement with sufficient data to ascertain the setting up of a research and development (R&D) unit for new clinker, cement and concrete products at its Mambong Line 1 facilities.

For Clinker Line 2, Sinoma Industry will undertake a separate technical assessment and evaluation study for the engineering, procurement, construction, and commissioning of its new line at Mambong.

Clinker Line 2 is estimated to generate a daily production of 6,000 tonnes or 1.9 million tonnes a year.

The study is expected to be instrumental in ensuring the success of the Clinker Line 2 project, which is set to exceed Sarawak's growing domestic cement demand and increase production efficiency.

The Clinker Line 2 will reduce Cahya Mata Cement's carbon footprint and ensure continuous sustainability to achieve its environment, social, and governance deliverables.

Liu Tao, managing director of Sinoma Industry, said the partnership exemplifies its commitment to supporting the sustainable development of Sarawak's cement industry.

"We look forward to working closely with the group to realise their vision for the economic development of Sarawak, providing innovative solutions, and reinforcing our position as a global leader in cement plant development.

"Collectively, we aim to create a lasting impact on the cement industry of Borneo as a whole, fostering sustainable growth through technological advancement," he added.

Sinoma Industry is a wholly-owned subsidiary of Tianjin Cement Industry Design and Research Institute (TCDRI), China's first large-scale national-level cement industry R&D provider.

TCDRI, which has the world's largest cement industry design and research team, acted as the turnkey contractor for the existing Mambong Line 1 plant in 1996.

© New Straits Times Press (M) Bhd