Cahya Mata Sarawak plans to double its cement capacity

Cahya Mata Sarawak (CMS) is looking at doubling its current cement production at the Bintulu grinding plant as the conglomerate plans to ramp up capacity for construction of Indonesia's new capital Nusantara. The Bintulu grinding plant in Sarawak has a current production capacity of 0.75Mta.

Regional demand for cement is expected to increase with the Nusantara City project set to be inaugurated in 2024. Indonesian President, Joko Widodo, had said early construction of Nusantara is underway, signalling some progress in the IDR142.34bn (US$32bn) project, according to a Reuters report. The mega project would see Indonesia move its capital from Jakarta to an underdeveloped area on Borneo island.

“The group is also talking to certain parties about joint ventures and partnerships in Indonesia,” sources told StarBiz, adding that CMS has contacted Bintuu Port Holdings Bhd on the port’s ability to handle the extra capacity.

CMS operates an integrated plant at Mambong, and grinding plants in Pending and Bintulu, as well as in Malaysia, with a combined production capacity of 2.75Mta of cement.