Cahya Mata awards RM673mil construction job to Chinese firm's Malaysian unit
Cahya Mata, in a filing with Bursa Malaysia today, said the contract involves engineering, procurement, construction and commissioning works for the new 6,000-tonne-per-day clinker line.
This will increase the plant's annual production capacity to 1.9 million tonnes.
The expansion, scheduled to begin in August and reach full commissioning by June 2027, is expected to more than double the company's current clinker capacity of 900,000 tonnes.
"The primary objectives of the project are to be self-sustaining to meet the growing cement demand in Sarawak, currently estimated at 1.7 million tonnes per year, by ensuring a continuous and reliable supply of clinker
"This will be achieved by utilising locally available natural resources for clinker production, thereby eliminating the need for clinker importation," it said.
Cahya Mata said beyond contributing to regional development, the project is also intended to generate new high-skilled job opportunities.
"Operational efficiency will be improved, contributing to a reduction in the overall carbon footprint.
"Ultimately, the initiative seeks to ensure long-term sustainability and strengthen Cahya Mata Cement's corporate image," it added.
Sinoma Industry, a subsidiary of China's Tianjin Cement Industry Design & Research Institute Co Ltd, brings extensive regional experience and was also involved in the construction of Cahya Mata Cement's existing Line 1, which has been in operation since 1996.
Cahya Mata said it has secured all required approvals from key government bodies.
This includes the environmental impact assessment from the Department of Environment in Putrajaya and the state planning authority's approval from Sarawak's Ministry of Natural Resources and Urban Development.
"The Mambong Clinker Line 2 is a key step in strengthening Sarawak's cement supply chain, boosting capacity, reducing import reliance, and ensuring we can meet future demand reliably.
"Beyond production, it reflects Cahya Mata's commitment to building a modern facility that positions us as possibly the greenest cement producer in the region," Cahya Mata group managing director Datuk Seri Sulaiman Abdul Rahman Taib said.
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