Sabah considers new plant to ensure clinker supply

Sabah Economic Development Corp (SEDCO) and Cement Industries (Sabah) Sdn Bhd (CIS) are reportedly considering plans to build a clinker plant to ensure supply into the Malaysian state, according to Bernama.

Sabah Trade and Industries Minister, Datuk Wilfred Madius Tangau, confirmed that clinker is currently being imported from Peninsular Malaysia and abroad.

"The cost structure for CIS is different from that of cement manufacturers in Peninsular Malaysia due to factors such as raw materials, shipping and logistics and as such there is difference in cement prices between Sabah and Peninsular Malaysia," said Mr Madius to the state assembly.

The answer was provided in response to a question regarding whether the government would be reviewing and regulating cement prices in both Sabah and Peninsular Malaysia. Mr Madius said that although cement prices were higher in Sabah compared to Peninsular Malaysia, the prices were still reasonable.

Over the last 10 years, cement prices in Sabah have not increased despite a rise in the cost of raw materials due to currency weakness, according to the trade and industries minister.