OM Sarawak, a 75:25 joint venture between ASX-listed OM Holdings Ltd and Cahya Mata Sarawak Bhd, has set aside A$20mil (RM57.6mil) as capital expenditure for the construction of the sinter plant with auxilliary facilities, a laboratory, offices and canteen
KUALA LUMPUR: Cahya Mata Sarawak Bhd
(CMSB), which is the sole cement supplier and manufacturer in Sarawak, is open for other players to participate in the market there.
“We are a monopoly currently, but it’s an open market. Anyone can come in and supply cement in Sarawak. But, right now, we are the sole cement manufacturer,” said CMSB CEO Datuk Isaac Lugun.
He was speaking to reporters at the Bursa Malaysia-Hong Leong Investment Bank Stratum Series on “Sarawak: Journey in Transformation” on Thursday.
Lugun said that CMSB’s cement manufacturing plant could produce 2.75 million metric tonnes per year, and it currently runs at 60% of capacity.
“This would ensure a consistent supply of cement and ensuring sufficient capacity to meet the state’s growing demand from increasing construction activities,” he said.
In FY18, about 32% or RM534mil to CSMB’s revenue came from its cement business.
He pointed out that moving forward, revenue contribution would also come from its investment in Sarawak Corridor of Renewable Energy (Score), Sacofa and Kenanga.
At Score, Lugun said CMSB has a 25% stake in OMS ferrosilicon and manganese smelter as well as 60% stake in Malaysian Phosphate Additive (MPA) plant, which is slated to commence operation in the fourth quarter of 2020.
On Sacofa, CMSB owned a 50% stake in the company, which is the sole provider of telecommunication towers in Sarawak.
Sacofa has a concession until 2021 to build, manage, lease and maintain towers.
Subscribe or renew your subscriptions to win prizes worth up to RM68,000!
