The Ministry of Industry (MoI) in Myanmar is inviting 'expressions of interest (EoIs)' from both local and foreign investors to jointly run the state-owned Thayet cement plant in Magwe region under a public-private partnership (PPP), said U Zaw Lin Tun, deputy director of No 2 Heavy Industrial Enterprise under the MoI.
Operations have been suspended at the Thayet works, which has been a loss-making plant due to poor technology and its reliance on gas for power has also been an issue, said U Zaw Lin Tun. However, the MoI wants to modernise the plant with new technology and replace gas with coal as a cheaper source of power. The coal technology used must not be damaging to the environment or harm local residents.
After the plant is upgraded, it will be able to produce 2500tpd of cement, more than double its current capacity, said U Zaw Lin Tun.
There are three state owned cement plants in Myanmar including No.31 Heavy Industry (Thayet), No. 32 Heavy Industry (Kyangin) and No. 33 Heavy Industry (Kyaukse). Currently, the MoI is partnering Myanmar Conch Cement Co, which is a joint venture between Myanmar and China, in operating the Kyaukse plant in Mandalay region. The plant has the capacity to produce 5000tpd of cement, according to the MoI.
Meanwhile, Parliament suspended operations at the 1600tpd Kyangin plant in Ayeyarwady region, which was running at a loss.
Currently, total production of cement in Myanmar is 6Mta, according to the MoI. The government will accept EoIs between 10 July and 9 August.
