MEDIA STATEMENT
CAHYA MATA CEMENT AND SINOMA INDUSTRY INKS TECHNICAL CONSULTANCY AGREEMENTS
Petaling Jaya, Selangor (Monday, 20 November 2023) - Cahya Mata Cement Sdn Bhd ("Cahya Mata Cement") a wholly-owned subsidiary of Cahya Mata Sarawak Berhad ("Cahya Mata" or "the Group"), in alliance with Sinoma Industry Engineering (M) Sdn Bhd (“Sinoma Industry”), a subsidiary of Tianjin Cement Industry Design and Research Institute ("TCDRI"), have announced their partnership with Sinoma Industry to undertake a comprehensive study and technical analysis for Cahya Mata Cement's plans to construct a new clinker line and optimisation of its existing facilities via the signing of technical consultancy agreements today. This arrangement for a technical analysis and study marks a major milestone for Cahya Mata Cement as it demonstrates its long-term commitment towards Sarawak's economic development. It is also in line with Cahya Mata Cement's commitment of substantial investments in expanding its cement capacity and establishing a new clinker line as per the Group's announcement on 27 June 2023.
Cahya Mata Cement is Sarawak's largest cement and clinker manufacturer, offering high quality and reliable cement for ready-mix and precast concrete products. It has been established since 1974 and began production in 1978 when it operated Borneo's first cement grinding plant at the Pending Industrial Estate, Kuching with its aim to support the development of the construction and housing industry in Sarawak.
Over the years, Cahya Mata Cement has expanded its facilities to help meet rising demand for cement as Sarawak has undergone rapid development with mega infrastructure projects throughout the Territory. Cahya Mata Cement has production and distribution facilities that are strategically located in every major town within Sarawak, including bulk terminals in Sibu and Miri. This ensures that Sarawak's main economic hubs such as Kuching, Sibu, Bintulu, Miri, as well as the emerging markets of Samalaju, Mukah and their vicinities have access to a stable, reliable and sufficient supply of cement to meet their needs.
Established in 2010, Sinoma Industry Engineering (M) Sdn Bhd ("Sinoma Industry") is a wholly-owned subsidiary of Tianjin Cement Industry Design and Research Institute (“TCDRI”). TCDRI is China's first large-scale national-level cement industry R&D provider and has the world's largest cement industry design and research team, displaying a leading position in equipment development and technical expertise. TCDRI acted as the Turnkey Contractor for the existing Mambong Line 1 plant in 1996, showcasing their technical expertise and understanding of Sarawak's business landscape. As a subsidiary of Sinoma International Engineering Co. Ltd., Sinoma Industry has also successfully executed various plant upgrading and development projects in Malaysia and in the ASEAN Region.
The technical assessment and studies undertaken by Sinoma Industry is projected to optimise the manufacturing capabilities at Cahya Mata Cement's existing Mambong Line 1 and ensure the success in the turnkey project for Clinker Line 2.
For Mambong Line 1, Sinoma Industry will provide technical study and assessment focusing on technology sharing and transfer of technical know-how, aimed at enhancing process efficiency and cost-effectiveness of the Mambong Line 1 operations and maintenance. This study will enable Cahya Mata Cement to implement targeted operational initiatives to optimise the production and manufacturing output of Mambong Line 1. Sinoma Industry's study will also provide Cahya Mata Cement sufficient data to ascertain the setting up of a Research and Development (R&D) unit for new clinker, cement, and concrete products at its Mambong Line 1 facilities.
For Clinker Line 2, Sinoma Industry will undertake a separate technical assessment and evaluation study for the engineering, procurement, construction, and commissioning of its new line at Mambong. The Clinker Line 2 is estimated to generate a daily production of 6,000 metric tonnes (MT) or 1.9 million MT/annum. Sinoma Industry's study is expected to be instrumental in ensuring the success of Clinker Line 2 Project which is set to exceed Sarawak's growing domestic cement demand and increase production efficiency. The Clinker Line 2 will reduce Cahya Mata Cement's carbon footprint and ensure continuous sustainability to achieve its Environment, Social and Governance (ESG) deliverables.
Commenting on the collaboration, YABhg. General Dato' Seri Diraja Tan Sri (Dr.) Mohd Zahidi bin Haji Zainuddin (R), Group Chairman of Cahya Mata said: “This signing demonstrates our continual commitment towards the development of Sarawak as our business represents an integral and vital part of the construction supply chain. We are confident about our venture for our Cement business due to our partnership with a global reputable company such as Sinoma Industry who has vast industry experience and technical expertise in the development of cement plants across the globe. The new Clinker Line 2 will provide us adequate reserve production capacity to materially reduce the risk of supply disruptions, provide additional gateways to nearby export markets and the capability to produce multiple types of cement. Furthermore, this timely expansion would further improve the Group's operational efficiency as a whole."
Speaking about this collaboration, Mr Liu Tao, Managing Director of Sinoma Industry, said: "We are honoured to be provided the opportunity to collaborate with Cahya Mata once more. This partnership exemplifies Sinoma Industry's commitment to supporting sustainable development of Sarawak's cement industry. We look forward to working closely with the Group in realising their vision for the economic development of Sarawak, providing innovative solutions, and reinforcing our position as a global leader in cement plant development. Collectively, we aim to create a lasting impact on the cement industry of Borneo as a whole, a whole, fostering sustainable growth through technological advancement."
Cahya Mata and Sinoma Industry stand united in enhancing Sarawak's economic development through supporting the long-term economic goals and shared commitment towards its growth and prosperity by ensuring a stable and sufficient supply of cement to the market.
Amongst those in attendance at the signing ceremony include YABhg. General Dato' Seri Diraja Tan Sri (Dr) Mohd Zahidi Bin Hj Zainuddin (R), Group Chairman of Cahya Mata, Mr Sun Jian, Vice President of TCDRI, Mr Liu Tao, Managing Director of Sinoma Industry, Dr Joe Khor Jaw Hui, Chairman of Cahya Mata Cement Sdn Bhd, members of the Board of Cahya Mata and YBhg Dato Sri Sulaiman Abdul Rahman B Abdul Taib, Group Managing Director of Cahya Mata.
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