Latest news with #ClinkerLine2
Borneo Post
23-07-2025
- Business
- Borneo Post
Cahya Mata's growth outlook cemented with RM673 mln Clinker Line 2 project
Representatives from Cahya Mata Cement and Sinoma Industry Engineering during the signing of the memorandum to kickstart the new clinker production line at Mambong Integrated Plant in Kuching. KUCHING (July 23): Cahya Mata Sarawak Bhd's (Cahya Mata) long-term growth outlook will be cemented with its upcoming RM673 million Clinker line 2 project which is expected to create 500 jobs at peak construction and generate spillover benefits for local businesses. The project was officially greenlit on July 21 when it was announced that Cahya Mata had officially awarded a RM673 million engineering, procurement, construction, and commissioning (EPCC) contract to Sinoma Industry Engineering (M) Sdn Bhd (Sinoma) for the construction of the Clinker line 2 at its Mambong Integrated Plant in Kuching. Sinoma's parent company is China-based Tianjin Cement Industry Design and Research Institute who was the EPCC contractor of Cahya Mata's existing Clinker Line 1. The project is slated to commence construction in August and fully commissioned by June, 2027. According to the research arm of MBSB Investment Bank Bhd (MBSB Research), the addition of Cahya Mata's Clinker line 2 which has a capacity of 1.9 million tonnes per annum will more than double their existing clinker capacity of 900,000 tonnes per annum. This boost in production is expected to help Cahya Mata to eliminate their clinker imports which current make up circa 50 per cent of their requirements. MBSB Research guides that this will not only drive structural cost savings but improve ESG performance over the medium-term. 'The facility will feature state-of-the-art technologies to improve environmental performance and energy efficiency, including a waste heat recovery system capable of generating up to 6MW of power and an advanced dust filtration system designed to reduce dust emissions to more than half of the current regulatory limit. 'The Clinker Line 2 will also employ high-efficiency equipment to reduce energy use and carbon dioxide emissions, while incorporating locally sourced alternative raw materials and fuels to further limit reliance on fossil fuels,' they shared. At peak construction, the mega project is also expected to create up to 500 jobs and generate spillover benefits for local businesses, particularly those in the Padawan and Kuching areas. The development of Cahya Mata's Clinker Line 2 is also timely given Sarawak's accelerating cement requirements stemming from upcoming mega-project such as the Sarawak-Sabah Link Road Phase 2, Trans Borneo Highway, and petrochemical-related developments in Bintulu and Samalaju. 'In this context, the strategic timing of Clinker Line 2 affirms its commitment to future-proofing its capacity while supporting the state's industrialisation drive,' the research arm opined.
The Star
21-07-2025
- Business
- The Star
Cahya Mata awards RM673mil clinker line construction contract to Sinoma
KUALA LUMPUR: Cahya Mata Sarawak Bhd 's unit Cahya Mata Cement Sdn Bhd has awarded a RM673 million contract to Sinoma Industry Engineering (M) Sdn Bhd to build a new 6,000-tonnes-per-day clinker line at its Mambong Integrated Plant in Kuching. Cahya Mata said in a filing with Bursa Malaysia today that the project is expected to more than double its subsidiary's annual clinker capacity from 900,000 tonnes to 1.9 million tonnes. "It would also improve the group's cost efficiency and eliminating the need for future clinker imports, which will significantly reduce the carbon footprint in the company's cement production," it said. "The project shall commence in August 2025 and is expected to commence production of clinker by April 2027 and be fully commissioned by June 2027," it said. Meanwhile, Cahya Mata group managing director Datuk Seri Sulaiman Abdul Rahman Taib said the Mambong Clinker Line 2 is a key step in strengthening Sarawak's cement supply chain, boosting capacity, reducing import reliance and ensuring future demand reliability. "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," he said. Cahya Mata said the facility will feature state-of-the-art technologies to improve environmental performance and energy efficiency, including a waste heat recovery system capable of generating up to six megawatt of power and an advanced dust filtration system designed to reduce dust emissions to more than half of the current regulatory limit. The Clinker Line 2 will also employ high-efficiency equipment to reduce energy use and carbon dioxide emissions, while incorporating locally sourced alternative raw materials and fuels to further limit reliance on fossil fuels. "At peak construction, the project will create up to 500 jobs and generate spillover benefits for local businesses, especially in the Padawan and Kuching area," it said. - Bernama
New Straits Times
02-05-2025
- Business
- New Straits Times
Cahya Mata unit to build second clinker line in Sarawak
KUALA LUMPUR: Cahya Mata Sarawak Bhd's subsidiary, Cahya Mata Cement Sdn Bhd, has signed an agreement to develop Clinker Line 2 at its Integrated Cement Plant in Mambong, Sarawak. Construction is expected to begin in the third quarter of 2025, with operations targeted to start by the second quarter of 2027. The project is in the final stage of obtaining regulatory approvals, the group said in a statement today. The new clinker line is expected to increase production capacity to meet growing market demand. Cahya Mata Cement managing director JT Choong said the project reflects the company's commitment to expanding local manufacturing and supporting Sarawak's construction sector. "It reflects Cahya Mata's dedication to building a state-of-the-art plant, generating highly skilled employment, and supporting the construction and development of the state," he added.
Borneo Post
30-04-2025
- Business
- Borneo Post
Cahya Mata Cement seals major deal on development of Clinker Line 2
Choong (third right) and Sinoma Industry Engineering managing director Liu Tai (third left) exchange the signed agreement, witnessed by Cahya Mata group managing director Dato Sri Sulaiman Abdul Rahman Taib (right) and others. KUCHING (April 30): Cahya Mata Cement Sdn Bhd (Cement), a subsidiary of Cahya Mata Sarawak Berhad, signed a major agreement today marking a significant milestone in the development of Clinker Line 2 at its Integrated Cement Plant in Mambong here. Cahya Mata in a statement said this strategic project underscores the Group's commitment to strengthening local production capacity and supporting the long-term growth of the cement industry in Sarawak. The signing ceremony at Cahya Mata's corporate office at Menara Darussalam in Kuala Lumpur was attended by its directors and senior management, Cahya Mata Cement's board members, senior management and project management office, as well as representatives from Sinoma Industry Engineering (M) Sdn Bhd—the appointed engineering, procurement, construction and commissioning contractor. The project is currently in its final stages of receiving regulatory approvals, with construction expected to begin in the third quarter of this year and full operations targeted by the second quarter of 2027. Cahya Mata said once completed, the new clinker production line will significantly enhance output to meet increasing market demand while aligning with its goals for operational efficiency, technological advancement, and environmental stewardship. Speaking at the ceremony, Cahya Mata Cement managing director JT Choong said this project is a testament of the company's continued investment in the future of Sarawak's cement industry. 'It reflects Cahya Mata's dedication to building a state-of-the-art plant, generating highly skilled employment, and supporting the construction and development of Sarawak,' he was quoted as saying in the release. Cahya Mata Cement Clinker Line 2 Mambong Sinoma Industry Engineering
Borneo Post
23-04-2025
- Business
- Borneo Post
Cahya Mata's Clinker Line 2 to boost output, cut imports as demand rises; phosphate and oil tools units show growth
MIDF Research said CMSB upcoming Clinker Line 2 has received all necessary approvals at both the domestic and Sarawak levels, with only federal Department of Environment (DOE) clearance pending resubmission for clarification. KUCHING (April 23): Cahya Mata Sarawak Berhad's (Cahya Mata) upcoming Clinker Line 2 has received all necessary approvals at both the domestic and Sarawak levels, with only federal Department of Environment (DOE) clearance pending resubmission for clarification, said analysts from MIDF Amanah Investment Bank Bhd (MIDF Research). This was confirmed during a meeting between MIDF Research analysts and Cahya Mata management on Tuesday. Once operational, analysts said Line 2 will eliminate the need for clinker imports, currently sourced from Vietnam, and increase output capacity from 1.7 million to 2.75 million tonnes. If both lines run concurrently, total output could reach 3 million tonnes. 'Once Line 2 comes online, Cahya Mata will become fully self-sufficient in clinker supply, with the flexibility to shut down Line 1 intermittently while maintaining stable production volumes. 'The new line is designed with green features including up to 6.0MW in heat recovery systems and an advanced dust filtration system which would reduce emissions by up to 50 per cent aligning with Cahya Mata's broader ESG commitments,' it said. It added that Cahya Mata has engaged Sinoma Industry Engineering (M) Sdn Bhd for plant maintenance and has helped boost production through operational efficiencies. According to management, cement demand is expected to exceed 1.7 million tonnes in the coming years, driven by a flurry of state-backed infrastructure projects. 'Among these are the ongoing development of the Autonomous Rapid Transit (ART) system, a new industrial factory requiring cement supply, and a naval base, which will add moderate but consistent demand. 'Management also shared that several other major projects are in the pipeline across Sarawak, reinforcing expectations that Cahya Mata's order book will remain healthy in the coming quarters. 'Medium-term projections point toward volumes exceeding 2 million tonnes as these developments gather pace,' it said. Addressing concerns about cheaper imported construction materials due to U.S.-China trade tensions, MIDF Research said Cahya Mata remains confident in its competitiveness. 'Cahya Mata expects its new clinker line to make it cost-competitive, with limited risk from import-driven price pressures. Fears of cheap material dumping were dismissed,' it said. Cahya Mata also confirmed it has no exposure to the US market – no revenue, exports, or projects are linked to the US – shielding it from the direct impact of tariffs. Meanwhile, the group's phosphate plant has entered the sellable commissioning phase. All four furnaces are now operational, processing raw material and producing goods that meet commercial purity standards. This has already contributed to revenue recognition in the fourth quarter of FY24, MIDF Research said. Although arbitration with its energy partner remains unresolved, management is optimistic that an agreement will be reached in the coming months. 'Once stabilised, they expect product purity to match levels seen in China's leading plants. The end products are targeted for export to Japan, Korea, and Russia, with Russia identified as a particularly high-potential market due to ongoing supply constraints,' it said. Cahya Mata's Oiltools segment, once under financial strain, has also stabilised and is regaining momentum. Positive developments have been seen in Indonesia, the Middle East, and Russia. In Indonesia, Cahya Mata is actively working with Pertamina, which remains the segment's key revenue driver. Meanwhile, the exit of Western players from Russia has created additional headroom for Cahya Mata's Oiltools unit to scale further. 'The Federal Government have expressed satisfaction with Cahya Mata's Russian involvement and are hopeful that phosphate trade will follow suit to deepen bilateral commercial ties,' it said. Cahya Mata Sarawak Berhad Clinker Line 2 lead
