KUALA LUMPUR -- A subsidiary of Bursa-listed Cahya Mata Sarawak has moved to allay the state government’s concerns over the purported cement supply shortage.
In a recent letter to the state Public Works Department sighted by The Vibes, Cahya Mata Cement Sdn Bhd said it has “more than sufficient” production capacity and “ample” cement reserves throughout Sarawak to cater to all current demand.
The letter dated April 17 this year was addressed to the department’s director Richard Tajan.
“We would like to assure you that we have more than sufficient built capacity to support the current and future needs of the market,” the letter issued by Cahya Mata Cement’s commercial head Choong Ju Tang read.
In January, it was reported that the Sarawak Economic Development Corp and Bintulu Development Authority were looking to set up a joint-venture (JV) company to import cement from Thailand.
The JV was intended to address the purported shortage and price hikes, importing between 500,000 and one million tonnes of cement from the kingdom.
However, in the recent letter, Choong also provided data on cement demand for the first four months of 2022 and 2023.
It noted that in January 2022, the demand was at 119,397 metric tonnes (MT), while the average volume per day was at 5,191 MT, compared with 115,245 MT for January 2023 with a daily average volume of 5,762 MT.
In April 2022, the total demand volume was at 62,437 MT (4,956 MT per day), while the figure was at 64,992 MT (5,415 MT per day) in the same month in 2023.
The total demand for January until April 2022 was 421,727 MT, compared with the increase to 462,415 MT for the same period in 2023.
“Rest assured, we have an excess stock reserve of cement prior to and after the coming Hari Raya Aidilfitri holidays,” Choong said.
“We are prepared and able to meet more than double the amount of the current volume requirements for cement in Sarawak.” – The Vibes, April 21, 2023
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