CMS to invest in new grinding plant

CMS to invest in new grinding plant

CMS Cement, part of the Cahya Mata Sarawak group, has announced plans to invest in a third grinding unit to meet Sarawak's further cement consumption requirements.

The new grinding plant will boost capacity by 1Ma to 2.75Mta. It will be established adjacent to CMS Cement's existing clinker plant in Mambong, Jalan Penrissen, according to Richard Curtis, managing director of Cahya Mata. 

CMS Cement is the only cement producer on Sarawak, one of two Malaysian states on the island of Borneo. The new grinding facility is expected to be completed by 2016 "to support Sarawak's future growth and development," Mr Curtis told local press. The new plants would serve the Kuching and its hinterland while the existing plant at Pending would cater for other towns in Sarawak. 

Last year CMS Cement recorded sales of about 1.67Mt and a three per cent increase is forecast for this year to 1.72Mt. Curtis added that the company may import 0.2Mt, less than the 0.27Mt imported in 2013.

Other investments to be undertaken include a third bulk cement barge to improve distribution capabilities, a 4000t cement silo to increase storage capacity and an inline packer for its Bintulu grinding plant.

Meanwhile, CMS Cement is set to raise prices by between 5-9 per cent to offset production costs. The price increase will be effective 17 January 2014 with a two-tier pricing level for bulk and bagged cement.

From 2009 to 2013, CMS Cement has only increased cement price by only 5.2 per cent although production cost had increased by 14.5 per cent, the company said at a press briefing.