Cheaper cement from CMS for infrastructure projects

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CMS currently has an annual production capacity of 2.75 million tonnes of cement (versus current state demand of 1.6 million tonnes per annum) and has bulk terminals in Sibu and Miri to ensure a pan-state delivery capability.

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CMS currently has an annual production capacity of 2.75 million tonnes of cement (versus current state demand of 1.6 million tonnes per annum) and has bulk terminals in Sibu and Miri to ensure a pan-state delivery capability.

KUCHING: Cahya Mata Sarawak Bhd (CMS) has come up with new types of cement products and high-performance concrete to support the state government’s infrastructure projects at lower cost.

The Sarawak conglomerate is also involved in the development of concrete roads. 

A new cement product CMS launched last November is Portland Limestone Cement (PLC), which took almost two years to develop.

“PLC  is an eco-friendly product manufactured by grinding a special blend of clinker, gypsum and high-quality limestone under stringent quality control.

“As limestone material is readily available and cheaper in price, the production of PLC with an addition of more than 20 percent limestone is reducing overall operational costs, thereby increasing profit margins.

“Priced lower than Portland Cement 42.5N, PLC also provides customers flexibility through its offer of a product that will meet their various requirements and budget. PLC in essence will help make construction activities in Sarawak more economical,” according to CMS in its Sustainability Report 2018 released on Monday.

The comprehensive report carries a joint leadership message from group chief executive officers Datuk Issac Lugun (corporate) and Goh Chii Bing (operations).

CMS said while Portland Cement 42.5N is an all-purpose product that could be used for all types of structures, PLC with a strength class of 32.5N is targeted for low-rise concrete structures, such as single-storey residential, office and commercial buildings.

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“Its high workability and plasticity makes PLC ideal for plastering and bricklaying and it is less susceptible to cracks during the drying process.

“It can also be used for construction of drains and rural or village roads.”

PLC, according to CMS, the sole cement manufacturer in Sarawak, has potential as a binder for soil stabilisation and that this should go down well given Sarawak’s soft soil conditions that have always presented a huge challenge for construction works.

Early trials done with Universiti Malaysia Sarawak (Unimas) on soil stabilisation have indicated that PLC has certain properties which makes it ideal for use on such conditions, added the company.

CMS currently has an annual production capacity of 2.75 million tonnes of cement (vs current state demand of 1.6 million tonnes per annum) and has bulk terminals in Sibu and Miri to ensure a pan-state delivery capability.

The group has also introduced new pre-cast products.

“Through our offer of more options in terms of product types, applications and prices, the group is progressively cementing its role as a strong and reliable supporter of the construction industry in the state,” said CMS.  

Noting that the state government has approved its largest ever budget of RM11.91 billion for 2019 with over 75 percent or RM9.07 billion allocated to fund development expenditure, CMS said it continues to explore multiple avenues to assist the government to implement projects at lower cost and with enhanced efficiency.

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The company said the major infrastructure projects, like the state coastal road, second trunk road, water and electricity grid projects as well as the initiatives under the digital economy are aimed to stimulate a higher level of economic activity and economic progress for the people. 

In line with the state’s growing infrastructure needs, CMS Resources Sdn Bhd (51 percent-owned unit of CMS) acquired a 56 percent equity stake in Borneo Granite Sdn Bhd for RM31 million last November.

“Through this acquisition, CMS has gained access to a granite quarry (a very limited natural resource in the state) and is now able to secure a reliable and immediate source of granite stones for the group’s existing and impending projects.

“Granite is required in large quantities for the construction of Pan Borneo Highway project and this investment positions us as the key supplier of granite for this project.

“With the inclusion of this granite quarry located in the southern region of Sarawak into the group’s growing asset portfolio have strengthened our quarry operations and are well positioned to meet growing market demand throughout the state,” said the report.

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The newly acquired quarry occupies about 139 hectares with two hill reserves. It is readily operational and has a logistical advantage for outbound delivery through a waterway.  

CMS said the acquired quarry, which is targeting an annual production of  one million tonnes, coupled with the group’s second production line at Sibanyis quarry with its annual production output of 1.3 million tonnes, provides the group’s quarry operations a significant enhanced capacity.

“This is particularly timely as demand for stone materials for the Pan Borneo Highway project (particularly the requirement to use granite stones for the premix wearing course) is anticipated to peak between 2019 and 2021.

“We are also well placed to benefit from other projects, such as the impending implementation of the coastal road and second trunk road projects by the state government.

“In addition, more infrastructure projects are already in the pipeline to be implemented over the next two years by the state government through open tenders.

“These projects are expected to create huge demand for stones and quarries during the construction period, even after the Pan Borneo Highway project’s completion,” added the report.

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