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CMS Cement intensifies investment in Sarawak

World Cement,

CMS Cement Sdn Bhd, the only cement producer operating in Sarawak, Malaysia, has announced that it will continue to invest in the region. The company will ramp up investment to 2016 by carrying out a number of projects that are currently in the final stages of development. This includes: a inline packer to increase bagging capacity at the Bintulu cement plant; enhancing storage and export/import capabilities at the Kuching plant by establishing a 4000 t cement silo and refurbishing the main jetty; investing in a third barge for bulk cement to improve distribution; setting up a 1 million t grinding plant.

The new projects follow on from a number of measures carried out over the last few years to enhance the company’s operations in Sarawak. CMS Cement invested RM80 million in expanding production capacity and improving efficiency and production quality at its clinker plant. It also spent RM56 million on projects such as expanding the distribution capabilities of its cement terminals in Miri and Sibu.

Due to rising production costs, CMS Cement will increase cement prices by 5 – 9% as of 17 February 2014. This will also enable the company to invest in Sarawak’s cement infrastructure and thereby meet the needs of the region, which is experiencing continued economic growth and development.

“CMS Cement has always – and remains – committed to the socio-economic growth of the state. From 2009 to 2013 CMS Cement increased prices by only 5.2%, despite production costs increasing by 14.5%. During the same period, other construction material costs increased by 17% – 70%. Absorbing increased production costs ourselves over the past five years, without compromising on international standards of quality, is indicative of our vision to support Sarawak’s growth and development,” said Dato’ Richard Curtis, Group Managing Director of Cahya Mata Sarawak Berhad, CMS Cement’s parent company. He went on to explain that house prices had increased by more than 30% in 2009 – 2013, compared to cement’s 5.2%. As the cost of cement equates to around 2% of the total costs of housing construction, the slight rise in cement prices had little impact.

Adapted from press release by

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