As demand for building materials trends up, it is no surprise that cement players are mulling capacity expansion to cater for future needs.
According to sources, Cement Industries of Malaysia Bhd (Cima) is looking to possibly expand its facilities down south. It was reported last year that Cima was planning an additional line at its Bahau facility in Negeri Sembilan and had set aside RM800 million for the expansion.
However, given that Cima was privatised by the UEM Group in 2008, it has kept a tight lid on such plans. Cima could not be contacted for comment.
“There had already been talk that Cima was looking to expand its facilities on the south side. This would take advantage of the potential growth boom in Iskandar Malaysia. Benefits for Cima will depend on whether it expands its grinder or clinker producing facilities,” says an industry source.