Displaying items by tag: Malaysia

Malaysia: The Sarawak Economic Development Corporation (SEDC) and Bintulu Development Authority (BDA) are planning to set up a joint-venture tasked with imported cement into Sarawak due to shortages and high prices. The company intends to import 0.5 – 1Mt/yr of cement from Siam Cement Group (SCG) in Thailand, according to the Star newspaper. Representatives of the SEDC and BDA recently visited SCG in Bangkok.

Cement prices in Sarawk are reportedly 15% higher than in mainland Malaysia and 4% higher than neighbouring Sabah. Supply and pricing issues have adversely affected infrastructure projects in the state. Maintenance at CMS Cement’s integrated Mambong plant south of Kuching and delays in delivering raw materials to its grinding plant at Kuching grinding plant caused further disruptions to cement supplies in late 2022.

Malaysia: The Johor Builders Association, Melaka Builders Association, Penang Builders Association and Perak Contractors Association have published a joint statement addressed to the Ministry of Domestic Trade and Cost of Living (KPDN). In the statement, they lobbied the KPDN to investigate an allegedly suspect rise in cement prices between November 2020 and December 2022.

The builders' associations said "We also want to extend an appeal to the ministry to conduct a review into whether any party may have violated the Competition Act, which prohibits anti-competitive agreements and abuse of dominant position in the market, during the implementation of these price increases."

Malaysia: Malayan Cement recorded sales of US$192m during the third quarter of 2022, more than triple its third-quarter 2021 sales of US$63.6m. The company recorded a US$213,000 profit, compared to a US$5.29m loss in the corresponding quarter of 2021.

Malaysia: Borneo Oil has entered into a conditional share sale agreement with Makin Teguh's 45% owner Global 2332 to enlarge its stake in the cement company by 31%, to 60%. Borneo Oil has proposed a private placement to raise US$11.3m towards funding the US$21.2m deal. It previously completed a US$4.65m shares issue on 26 October 2022. Bernama Daily Malaysian News has reported that Makin Teguh plans to commence operations at its 220,000t/yr Sabah integrated cement and clinker plant in early 2023. It owns two limestone mines, with total reserves of 14.4Mt.

Malaysia: Cahya Mata Sarawak has informed its customers that its cement despatches will be 'back to normal' by 6 November 2022. The producer's closure of its 1Mt/yr Kuching cement plant for maintenance, followed by unexpected raw materials supply issues, has caused a shortage of cement in western Sarawak State. Bernama Daily Malaysian News has reported that a 14-day delay to raw materials deliveries to the Kuching plant ensued due to heavy rains.

The producer said “We would like to apologise for the shortage of cement, and will strive to ensure a steady supply of cement to all of our customers.”

Cahya Mata Sarawak has successfully maintained regular supply of cement to other areas of Sarawak, including Bintulu, Miri and Sibu, through despatches of cement from its Bintulu grinding plant.

Malaysia: Bank CIMB Group Holding Berhad has published sustainable finance targets for its lending to cement sector clients. Islamic Finance News has reported that the institution will reduce the emissions intensity of loans to cement producers by 36% to 720,000t per tonne of cementitious product by 2030 from 460,000 at present.

CIMB Group Holding Berhad recently doubled its sustainable finance target to US$13m by 2024, from US$6.48m.

Malaysia: Makin Teguh and Borneo Oil have held a ceremony to mark the firing up of the kiln at the 0.23Mt/yr ILPP cement plant being built in Sabah. The new plant is next to a limestone quarry owned by Borneo Oil and it is set to further benefit from the oil company’s other limestone assets via long term supply contracts, according to the Borneo Post newspaper. Borneo Oil increased its stake in Makin Teguh to 38% in May 2022.

A China-based supplier has built the new plant. It includes a waste heat recovery (WHR) unit and it reportedly the first integrated cement plant in Malaysia to use alternative fuels such as heavy fuel oil derived from refined recovered oils, palm kernel shells and bio char.

Vietnam: Cement producers and exporters will pay an additional 5 – 10% tariff on their exports of cement and clinker from 1 January 2023. Viet Nam News has reported that the move aims to bring down local cement prices by increasing supply in the country. These have risen over the past six months, while export prices have remained level.

The Vietnam National Cement Association (VNCA) says that its members are struggling to increase exports in a highly competitive export market. In the six months up to the end of August 2022, China, the Philippines, Bangladesh, Malaysia and Taiwan all reduced their imports of Vietnamese cement. The decline included a ‘substantial’ reduction of imports by China and the Philippines. Exporters faced logistical difficulties in shipping cement to the Philippines, while China’s consumption dropped due to new Covid-19 restrictions and low residential construction activity there.

The VNCA forecasts cement production of 108Mt in 2022, against a national demand of 65Mt. It projected that a series of infrastructure projects will bolster domestic consumption between 2022 and 2025.

Malaysia: Cahya Mata Sarawak says that it has no plan to double the capacity of its Bintulu, Sarawak, grinding plant, Reuters News has reported. The company, however, noted the potential ‘opportunity’ offered by the construction of a new Indonesian capital in Nusantara, East Kalimantan, on the opposite side of Borneo.

Malaysia: Hume Cement Industries Berhad recorded sales of US$117m in the first nine months of 2022, up by 4.7% year-on-year from US$112m. It recorded a loss for the period of US$415,000, down by 82% from US$2.27m. In the third quarter of 2022, Hume Cement Industries Berhad recorded a profit of US$438,000, compared to a US$2.69m loss in the third quarter of 2021.