Cahya Mata Cement Line Deal Worth RM673mil

ARGO CAPITAL
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Major Investment to Boost Cement Production Capacity

Cahya Mata Cement Sdn Bhd, a subsidiary of Cahya Mata Sarawak Bhd, has officially awarded a significant contract valued at RM673 million to Sinoma Industry Engineering (M) Sdn Bhd. The contract is for the construction of a new 6,000-tonnes-per-day clinker line at the company’s Mambong Integrated Plant in Kuching. This project represents a major strategic investment, as it is expected to more than double the subsidiary’s annual clinker capacity from 900,000 tonnes to an impressive 1.9 million tonnes. This expansion is designed to meet growing market demand and enhance the company’s position in the regional cement industry. The project is scheduled to begin in August 2025, with clinker production expected to commence by April 2027 and full commissioning slated for June 2027.

Strategic Goals and Environmental Commitments

Beyond the significant boost in production capacity, the new Mambong Clinker Line 2 is a key step in strengthening Sarawak’s cement supply chain by reducing import reliance and ensuring the long-term reliability of local supply. Cahya Mata group managing director Datuk Seri Sulaiman Abdul Rahman Taib highlighted that the project goes beyond just production, reflecting a strong commitment to environmental sustainability. The new facility will incorporate state-of-the-art technologies to improve environmental performance and energy efficiency. These features include a waste heat recovery system capable of generating up to six megawatts of power and an advanced dust filtration system that will reduce emissions to more than half of the current regulatory limit. Furthermore, the use of locally sourced alternative raw materials and fuels will significantly lessen the plant’s reliance on fossil fuels, aligning with a vision to become one of the region’s greenest cement producers.

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Economic Benefits and Local Community Impact

The construction and operation of the new clinker line are expected to generate substantial economic benefits for the local community. During its peak construction phase, the project is anticipated to create up to 500 jobs, providing significant employment opportunities and generating positive spillover effects for local businesses, particularly in the Padawan and Kuching areas. On a corporate level, the project will lead to a considerable improvement in the group’s cost efficiency by eliminating the need for future clinker imports. This not only strengthens the company’s financial position but also contributes to a lower carbon footprint in its cement production. The combination of increased capacity, technological innovation, and local economic development makes this project a crucial driver for sustainable industrial growth in the region.

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