San Teh Ltd said it build a new cement plant in Dali City in Yunnan, China at a cost of S$60m. This will be San Teh’s second cement plant in China.
SanTeh currently operates a plant in Fujian Longyan, China. The Dali plant, which will be built on a 266,000m2 site, will have the capacity to produce 1Mt of cement a year and 2,500tpd of clinker, San Teh said.
The new plant will help augment the group’s capacity since the existing plant in Fujian Longyan is running at near full capacity, it said. "The investment in the Dali plant not only will enable the group to capitalise on the market opportunity but also strengthens the group’s competitive position through greater economies of scale," San Teh said. "When the plant become fully operational in 2008, it is expected to be one of the major revenue contributors to the group," it added.