Displaying items by tag: Malaysia

Malaysia: The state government of Sabah has dismissed concerns over illegal logging, investor withdrawal and environmental risks related to the US$277m Tongod cement plant project.

Masiung Banah of the Sabah State Legislative Assembly said "There is no logging taking place. The quarry spans 200 acres [80.9 hectares], not thousands as claimed. The project has undergone thorough environmental assessments, including an Environmental Impact Assessment (EIA), to ensure compliance with regulations."

Masiung, also chair of Borneo Cement, said that the project is proceeding as planned and that site clearing had already begun, following the approval of the EIA, according to the Daily Express newspaper. He added that the 5000t/day plant in Kampung Kayawoi will address Sabah’s cement shortage, reduce prices through local sourcing and create up to 1000 jobs for local people, as well as improving roads, electricity and water supply in the region. The Sabah Energy Commission has reportedly agreed to supply 40% of the plant’s required electricity and a 26km access road will be built to transport materials.

Malaysia: The state government of Sabah has denied rumours that an investor has departed from the Tongod cement plant project. Industrial Development and Entrepreneurship Minister Datuk Phoong Jin Zhe told the Sabah State Legislative Assembly that Borneo Cement had confirmed that all parties involved in the project remain committed, according to the Star newspaper. He added that the project had received approval for earthworks but that construction work was waiting for the approval from an Environmental Impact Assessment report.

China-based Sinoma Industrial Engineering is preparing to build the 1.75Mt/yr plant. Two-thirds of the unit’s output is intended for the local market in Sabah. The rest will be exported. Ground-breaking work at the site was previously reported in April 2024. However, Borneo Cement subsequently faced accusations of unauthorised forest clearances later in the year.

Malaysia: Cahya Mata Sarawak (CMS) subsidiary Cahya Mata Cement is seeking approval from the Sarawak government to begin construction of a second clinker production line in Mambong. The line was first announced in January 2025. According to Bernama news, the new line will more than double the producer’s clinker capacity to 1.92Mt/yr from 900,000t/yr and is scheduled for completion in March 2027. Once operational, it will enable the group to manufacture up to 2.4Mt/yr of cement.

The project will be developed with China-based Sinoma Industry Engineering under a consulting agreement signed in 2023. The agreement covers the design and subsequent construction of the clinker line, as well as optimisation of the existing production line. The line will include a 6MW waste heat recovery system and a dust filtration system to cut emissions by 50%.

CMS group general counsel Izzam Ibrahim said “We are going through the regulatory approvals, and we are working very closely with the state government to obtain approval to start construction. In fact, we have lined up all the necessary manpower and procurement processes to kickstart the project. Once the project is off the ground, the target for completion will remain on track.”

Vietnam: The General Department of Vietnam Customs recorded exports of cement and clinker of 29.7Mt in 2024, down by 5% year-on-year from 2023 levels. Producers and exporters generated US$1.14bn in revenues from the exports, down by 14% year-on-year.

Việt Nam News has reported that the Philippines topped the list of importers of Vietnamese cement, with 8.01Mt (27%), down by under 1%. Bangladesh imported 5.49Mt (19%), up by 11%, and Malaysia imported 1.68Mt (6%), down by 3%.

Malaysia: Cahya Mata Cement will build a second line at its Mambong facility in Kuching to increase cement production and support Sarawak's infrastructure development. Construction is expected to take 24 months, with expected completion in March 2027.

The project will add 6000t/day of clinker capacity, raising output to 1.92Mt/yr. This will enable the company to become self-sufficient in its clinker supply and therefore eliminate the need for imports.

The company signed a technical consulting agreement with Sinoma Industry Engineering in November 2023 to design and construct the new production line. It will feature a waste heat recovery system, generating up to 6MW of power, alongside a dust filter designed to cut emissions to half of the current regulatory limit, according to the New Straits Times. The new line will also use locally-sourced alternative raw materials to reduce its reliance on fossil fuels.

Cahya Mata Cement acting division head Choong Ju Tang said "Once the project is approved and construction is completed, Cahya Mata Cement will be well-positioned to meet the construction industry's demand.”

Malaysia: Makin Teguh Sdn Bhd (MTSB) has increased its production of cement to 700t/day to address construction demand in Sabah’s east coast amid a blockade affecting Cement Industries Sabah (CIS), according to the Daily Express. The plant was commissioned in October 2023.

The blockade reportedly stems from a land ownership dispute, where individuals have blocked an access road, leaving CIS unable to distribute cement from its facility.

Charlie Lee Puan Kiang, MTSB operations director, said “Our primary objective is ensuring stable cement supply throughout Sabah’s east coast. We are encouraging hardware stores and cement distributors to use our abundant supply.”

Malaysia: Malayan Cement’s net profit rose by 45% year-on-year to US$31.4m for the first quarter of the 2025 financial year ending 30 September 2024, up from US$21.6m in the same period in 2023. Revenue increased by 3% year-on-year to US$264m from around US$257m. The company stated that its ready-mixed concrete segment had contributed a higher share of revenue due to heightened demand for concrete products. It anticipates continued domestic demand and plans to increase export capacities, especially at its Langkawi plant.

Malaysia: Borneo Cement (Sabah) (BCS) plans to convert its upcoming integrated cement plant in Sabah's Tongod district into a tourist destination once the plant begins operations in May 2025. According to BCS chair Masiung Banah, limestone processing and environmental protection practices could serve as a an ‘attractive package’ for foreign and domestic tourists, according to The Star Malaysia. He said that limestone areas rich in flora and fauna and tropical ecosystems would be maintained without being polluted by factory waste. The plant will also reportedly be made into a research hub for Malaysian universities. It is currently in its first phase of development.

Malaysia: Masiung Banah, the chair of Borneo Cement, has said that no forest clearance is taking place at the site of a proposed integrated cement plant in Tongod region. He explained that logging had taken place at the site before the project was proposed, according to the Star newspaper. The company added that it holds Environmental Impact Assessment approval to build a quarry and connecting road. It made a statement on the issue in response to the issue being raised by the Warisan Party at the Sabah state assembly in late November 2024.

Borneo Cement is a joint-venture between the Sabah state government and China-based Sinoma Industry. It plans to invest around US$270m in the project. Commissioning is scheduled from early 2026.

Italy: Cementir Holding has blamed a fall in earnings in the first nine months of 2024 on “lower results achieved in all geographical areas except Egypt.” It added that sales had fallen due to a decrease in volumes in some places and negative currency effects in Türkiye and Egypt. The group’s revenue fell by 5% year-on-year to €1.24bn in the first nine months of 2024, from €1.30bn in the same period in 2023. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) dropped by 9% to €296m from €326m. Sales volumes of cement and clinker remained stable at 7.98Mt. It noted that volumes increases were reported in Türkiye and, to a lesser extent, in Malaysia and the US. However, volumes of ready-mixed concrete rose by 5% to 3.33Mm³ from 3.18Mm³.

Francesco Caltagirone Jr, chair and CEO, said “The results for the first nine months of 2024 are in line with our expectations and, after several quarters of contraction, signs of a market turnaround in some geographies are emerging in the third quarter of 2024. We are strengthening our competitive position through initiatives such as: the investment on Kiln 4 in Belgium, the restart of the second line in Egypt, the acquisition in concrete in Nordic & Baltic, a new limestone quarry in Malaysia, and the repurchase of a large part of the minority interest in our Egyptian subsidiary, to prepare ourselves for any upcoming market opportunities”.