Displaying items by tag: Malaysia

Malaysia: Tasek Corp reported a 7.1% drop in earnings to US$6.4m in the third quarter of 2014 amid stiff competition. Earnings declined despite a 3.3% rise in revenue to US$44.4m during the three month period. Tasek said that it suffered lower margins from the cement segment due to intense price competition on the market. For the nine months to the end of September 2014, earning were 16.3% higher at US$23.2m, with revenue climbing by 14.5% to US$144m. Tasek said that the outlook for the fourth quarter of 2014 was expected to remain positive.

Vietnam: In the first seven months of 2014, Vietnam earned US$563m from the export of 13.1Mt of clinker and cement, a 24% rise year-on-year in value terms and a 20.4% increase in terms of volume. Indonesia, Taiwan and Malaysia were the largest importers of Vietnamese clinker and cement in this period, according to the Vietnamese Ministry of Industry and Trade.

Indonesia imported 1.42Mt of clinker and cement (worth US$69m), Taiwan bought 0.86Mt (US$37.6m) and Malaysia purchased 0.7Mt (US$34.7m). Cambodia was fourth with 0.29Mt (US$15.6m).

Vietnam's domestic cement sales are expected to rise by 9% year-on-year to between 49 - 50Mt in 2014, while cement and clinker exports are likely to hit 16 - 20Mt. The country exported 15Mt in 2013.

Malaysia: Scientists have discovered a new snail species on a limestone hill known as Kanthan in Malaysia. They have named the species, which is only 2-3mm in diameter, 'Charopa lafargei,' after Lafarge Malaysia, the cement producer that owns the hill.

As Kanthan is the only place that this species has been observed, Charopa lafargei was immediately classed as 'critically endangered' in the IUCN Red List for Endangered Species. This means that its future is effectively in the hands of Lafarge, which purchased the hill to make cement. The scientists decided to name the snail after Lafarge for this reason, although it is not clear if or how the name will affect the future actions of the producer.

"I'm not aware of a species threatened with extinction that has been given the name of the company that can determine whether it goes extinct or survives," said Tony Whitten from Fauna & Flora International.

The new snail is not the only endemic species found on the hill. Kanthan is also home to nine plant species that are on Malaysia's Red List of Endangered Plants. One critically endangered spider, one gecko and two other snails that are also found only on Kanthan.

Malaysia: Tasek Corp Bhd has announced a net profit of US$9.7m in the second quarter of 2014, an increase of 42.5% from a net profit of US$6.8m in the same quarter of 2013. Its revenue was 20.8% higher year-on-year at US$53.6m, compared with US$44. The company said that the higher revenue was mainly due to higher demand for cement in Malaysia, with its concrete and aggregate units performing less well.

For the six months to 30 June 2014, Tasek's net profit climbed by 28.7% year-on-year to US$17.6m from US$13.6m in the same period in 2013. Revenue grew by 20.3% to US$104m from US$86.1m a year earlier.

"The ongoing government projects under the Economic Transformation Programme such as the MRT (mass rapid transit) and LRT (light rail transit) line extension projects, are expected to continue to lead the construction sector's growth in the remaining months of 2014," said the company in a statement to the Malaysia Bourse. It anticipates that its performance will 'continue to be positive' in the third quarter of 2014.

Malaysia: Christian Pfeiffer has received the order to erect a turnkey cement grinding plant, including silos and packing facility, for Caha Mata Sarawak (CMS) in Kuching, Malaysia. The related contract was signed on 23 June 2014. The Euro36m order comprises engineering, fabrication and supply of the entire equipment including electrical and control equipment, installation and commissioning of the grinding plant as well as the complete construction work and layout of roads. The grinding plant has a designed capacity of 1Mt/yr of cement.

The delivery includes a two-chamber ball mill with slide shoe bearing, two 10,000t silos, two big bag loading stations and a packing and palletising installation for truck loading with a capacity of 3,000 bags/hr. One of the silos is equipped with a one-chamber system. The other one with a two-chamber system. The specific energy demand of the entire grinding plant is less than 40kW per tonne of cement. The construction work will start in July 2014 and completion and commissioning are scheduled for summer 2015.

Germany: Gebr. Pfeiffer has announced new orders for mills in Turkey, Iraq and Malaysia.

In Turkey, Bilim Makina has ordered four mills for a cement plant in Elazig. The order covers an MPS 250 BK roller mill with a drive power of 500kW for coal grinding and two safety shut-off dampers. The mill is designed to yield 35t/hr of petroleum coke, with the material being ground to a fineness of 3.5% R90 µm. A MPS 5000 B mill will be used for cement raw material grinding. The mill featuring a drive power of 3800kW will be capable of producing 470t/h of cement raw material ground to a fineness of 12% R 90µm. Two MPS 5000 BC vertical roller mills will be used for cement grinding. Each of the mills features a drive power of 4400kW and will grind 200t/h of Ordinary Portland Cement with a specific surface of 3400cm²/g acc to blaine. All four mills are scheduled to be delivered in the spring of 2015.

In Iraq, Sinoma Suzhou Construction, acting as general contractor, has ordered two MVR 6000 C-6 cement mills. The two MVR cement mills will come equipped with a conventional drive with an installed power of 6000kW. They will grind various cement qualities to the required fineness degrees between 3600 - 5500cm²/g depending on the product type, achieving capacities of 132 - 210t/hr. The cement mills are scheduled to be delivered at the end of 2014.

In Malaysia, Sinoma subsidiary Tianjin Cement Industry Design & Research Institute (TCDRI) has ordered one MPS 2800 BK coal mill for YTL Cement. Featuring an installed power of 700kW, the coal mill will be grinding 35t/hr of a sub-bituminous coal with a total moisture content of 25% to a product fineness of ≤10% R 90µm. The delivery of the mill is scheduled for the end of 2014.

Malaysia: Cement Industries of Malaysia Bhd (CIMA), a wholly-owned subsidiary of UEM Group Bhd, is set to be the first cement manufacturer in the country to use tyres and biomass waste as an alternative source of fuel.

CIMA managing director Mohd Yusri Md Yusof said that the company has installed an alternative fuel combustion system from Japan's Taiheiyo Engineering Corporation, which will allow the company to use tyres and biomass waste such as palm kernel shell and empty fruit bunch (EFB) as an alternative source of fuel.

"The move makes CIMA the first cement manufacturer in the country with this technology," said Yusof. He added that using waste as alternative fuel for cement production ensures that waste materials are reused in a responsible manner instead of being disposed of in landfills.

"With this state-of-the-art technology in place, we can reduce energy costs through the utilisation of tyres and biomass up to a maximum of 30%, while at the same time playing an active role in reducing our carbon footprint," said Yusof.

Meanwhile, Plantation Industries and Commodities minister, Douglas Uggah Embas, said that the Malaysian government has identified biomass as one of the growth areas towards creating wealth from waste. "The National Biomass Strategy 2020 outlines the framework and the potential of the biomass in creating higher value-added economic activities. The National Biomass strategy envisages a potential contribution of Gross National Income of US$9.16bn by 2020," said Embas.

There has been an interesting knock-on effect from further economic integration of the Association of Southeast Asian Nations (ASEAN) this week. Holcim Philippines may delay the construction of a 2.5Mt/yr cement plant in Bulacan province due to a drop in import tariffs in 2015. Vietnam or Indonesia were named as possible sources of clinker due to their excess capacity.

The ASEAN group comprises 10 countries including Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand, Vietnam, Laos, Myanmar and Cambodia. Their respective cement production capacities range from 0.3Mt/yr at a clinker grinding plant in Singapore to Indonesia's integrated cement production capacity of 45Mt/yr. In total the ASEAN countries have a production capacity of around 220Mt/yr for a population of about 600m with national gross domestic products (GDP) per capita ranging from US$900 (Laos) to US$52,000 (Singapore).

One scenario for cement producers in the ASEAN countries is that they might be swamped by exports from places like Vietnam. That country had a production capacity of 73Mt/yr in 2013 with cement sales predicted to rise to 63Mt in 2014. Assuming the government released figures are correct, that leaves at least a 10Mt of cement production-sales gap that could torpedo a neighbouring country's cement industry in the free trade area.

Indonesia, the other potential source of clinker that Holcim Philippines mentioned, has seen construction growth slow and production capacity grow. Holcim reported in its nine-month report in November 2013 that, while national cement sales had risen by 5.3% to 41.6Mt, supply capacity had risen by 9% to 59Mt/yr. Assuming equal sales distribution throughout this suggests a capacity gap of 4Mt.

Some politicians in the region have complained that impending free trade area will create winners and losers. At a recent ASEAN meeting in Yangon, Myanmar a Myanmar planning minister raised the issue of a development gap within the ASEAN region calling for renegotiation for countries like Myanmar, Cambodia and Laos.

Meanwhile both the cement industries in Vietnam and Indonesia have clearly anticipated the implications of the ASEAN Economic Community. The Vietnam National Cement Association expects to remain competitive within the ASEAN region and against Chinese imports after 2015. In Indonesia State Enterprises Minister Dahlan Iskan stated this week that the cement industry was ready for the ASEAN Economic Community thanks to the government's strategy to consolidate its major cement producers within one company, Semen Indonesia. Consistent cement industry growth in South East Asia may be about to change.

Malaysia: Cement manufacturer CMS Cement Sdn Bhd, a Cahya Mata Sarawak Bhd subsidiary, will invest in a third cement grinding plant that will boost its installed capacity by 1Mt/yr to 2.75Mt/yr.

Cahya Mata group managing director, Datuk Richard Curtis, said that the plant would be adjacent to CMS Cement's clinker plant in Mambong, Jalan Penrissen. "We are now evaluating tenders for the project. It is expected to be ready by 2016 to support Sarawak's future growth and development," said Curtis. He said that the new plant, which would be integrated with the clinker plant, would serve the needs of Kuching and its hinterland while the existing plant at Pending would cater for other towns in Sarawak when the new factory was commissioned.

CMS Cement recorded sales of 1.67Mt of bulk and bagged cement in 2013. Curtis said the company's cement sales were estimated to increase to 1.72Mt in 2014 and that the company might import 0.20Mt, which was lower than the 0.27Mt imported in 2013. Once the third grinding plant is operational, the company will be able to address any production disruptions when one of the plants is shut down for maintenance.

CMS Cement will invest US$18.1m on the new plant, a third bulk cement barge to improve distribution capability, a 4000t cement silo to increase storage capacity and an inline packer for the Bintulu grinding plant to beef up capacity for bagged cement.

Malaysia: Lafarge Malayan Cement, Malaysia's largest cement producer, is considering an expansion drive to help meet buoyant domestic demand. Lafarge Malaysia has a 40% share of the local market, in which the total industry production averages 20Mt/yr.

"We will probably expand... (but) it needs to be finalised by our board and I can't discuss it in advance," said Lafarge Malaysia president and chief executive officer Bradley Mulroney in an interview. He added that as market leader, the company has to make sure that it has sufficient capacity to maintain its position.

Lafarge Malayan Cement holds three integrated cement plants, a grinding plant and it operates five quarries. In 2012 the company reported a 10% growth in net profit while revenue grew 7% to US$887m.

Lafarge's rivals in the sector include YTL Cement Bhd, Tasek Corp Bhd and Cement Industries of Malaysia Bhd (CIMA). Both YTL Cement and CIMA have planned capacity expansions of around 1.5Mt/yr. According to Bank Negara Malaysia, the construction sector will grow by 15.9% in 2013, helped by various projects under the government's Economic Transformation Programme (ETP).