CMS potential beneficiary of hydroelectric project

Cahya Mata Sarawak Bhd (CMS) could benefit from the Sarawak Baleh Hydroelectric Project (HEP) as the company is the sole cement producer and major building material supplier in the state, Maybank Investment Bank Bhd believes.

The joint venture hydroelectric project between China Gezhouba Group Co Ltd and Untang Jaya Sdn Bhd would be looking to procure up to 45 per cent of locally-sourced content, which was expected to benefit local players, according to the research house.

"CMS is a potential beneficiary as the sole cement producer and major building material supplier in Sarawak," Business Times (Malaysia) quoted Maybank as stating.

The Baleh HEP will be the fourth hydropower plant in Sarawak and is expected to be fully commissioned in 2025.

"In the longer term, Baleh will help bring new investments into Sarawak, especially in energy-intensive industries, which could benefit CMS's property development at the Samalaju Industrial Park," the report added.

CMS Cement owns a 1Mta integrated facility at Mambong, Sarawak. A new grinding system was constructed by Christian Pfeiffer in 2016, which features a 150tph ball mill, two 10,000t silos and a 3000 bag/h packing and palletising machine. CMS Cement also runs two grinding units at Pending and Bintulu with capacities of 1Mta and 0.75Mta, respectively. The company now has sufficient capacity to supply all of Sarawak without the need to rely on cement imports.