CMS Cement Sdn Bhd Stresses Its Commitment To Support Sarawak’s Long-Term Economic Growth
Speaking at the event, Dato’ Richard Curtis, Group Managing Director, Cahya Mata Sarawak Berhad, parent company of CMS Cement, said: “CMS Cement has always – and remains – committed to the socio-economic growth of the state. From 2009 to 2013 CMS Cement increased prices by only 5.2%, despite production costs increasing by 14.5%. During the same period, other construction material costs increased by 17%-70%. Absorbing increased production costs ourselves over the past five years, without compromising on international standards of quality, is indicative of our vision to support Sarawak’s growth and development.
Addressing any speculation about the impact of cement price increases, CMS Cement announced that house prices in Sarawak have increased by over 30% between 2009 and 2013, despite cement prices increasing by only 5.2% over that period. They added that the cost of cement equates to just 2% of the overall cost of constructing property, and so the modest increases since 2009 have had almost no impact on the total cost of property.
CMS Cement has invested over RM56mil in the last six years to improve its pan-State distribution capabilities including its two cement terminals in Miri and Sibu. This is in addition to the RM80mil invested in upgrading its clinker plant’s production capacity and to improve its operational efficiencies and production quality.
CMS Cement spoke of its plans to intensify its investment in Sarawak from now through to 2016. The plans, which are all in the final development stage, include: a third bulk cement barge to improve distribution, a 4,000-ton cement silo in Kuching to increase storage capacity, an Inline Packer for the Bintulu Plant to improve capacity for bag cement, the refurbishment and upgrade of the main jetty in Kuching to improve our ability to more efficiently handle the export of bulk cement and the import of raw materials or bulk cement and a one-million metric ton capacity cement grinding plant to support the future growth and development of Sarawak.
Dato’ Richard Curtis explained that it was not sustainable for CMS Cement to continue to absorb these increased production costs and at the same time to continue to make the necessary substantial capital investments required to ensure it remains positioned to meet the growing needs of the State for cement and precast products. Thus, it has proven necessary to increase cement prices by between 5-9% effective 17 February 2014. Dato’ Richard Curtis added that this increase will have a minimal impact on their customers’ and partners’ businesses and will enable them to sustain both the levels of investment needed in the industry and the quality and reliability of our supply to our customers as Sarawak’s economic development accelerates.
