Cahya Mata Sarawak plans second clinker line to double cement output, says performance improving despite legal proceedings

KUCHING (April 12): Cahya Mata Cement Sdn Bhd, a wholly owned subsidiary of Cahya Mata Sarawak Bhd (KL:CMSB), is seeking approval from the Sarawak government to commence the development of a new facility, Clinker Line 2, in Mambong here.
CMSB group general counsel Izzam Ibrahim said the company is preparing to strengthen its position as the largest clinker producer in Borneo through this project.
“We are going through the regulatory approvals, and we are working very closely with the state government to obtain approval to start construction.
“In fact, we have lined up all the necessary manpower and procurement processes to kick-start the project. Once the project is off the ground, the target for completion will remain on track,” he told a press conference at the CMSB Raya Open House here on Saturday.
The Clinker Line 2 development, which is expected to be completed in March 2027, will be capable of producing an additional 6,000 tonnes of clinker daily, effectively doubling Cahya Mata Cement’s annual production capacity from 900,000 to 1.92 million tonnes.
The project is set to enhance cement production capacity in Sarawak, and meet the state’s growing infrastructure demands for the next 15 years.
The new line will be developed in collaboration with Sinoma Industry Engineering (M) Sdn Bhd, following a technical consulting agreement signed in November 2023. The agreement covers the design and subsequent construction of the clinker line, as well as optimisation of the existing clinker production facility.
The new facility will feature a waste heat recovery system capable of generating up to six megawatts of power, an advanced dust filtration system to reduce emissions by 50%, and equipment designed to lower both energy consumption and carbon dioxide emissions.
Once operational, the new facility will enable the group to meet the growing demand for cement in Sarawak, with a projected annual output of 2.4 million metric tons.
Unfazed by legal proceedings
Meanwhile, CMSB continues to demonstrate notable improvements in operational performance despite ongoing legal proceedings, according to Izzam.
He said the company’s management remains steadfast in its commitment to ensuring business continuity and upholding stakeholder confidence.
“How can we maintain smooth operational performance? It’s because we have a dedicated management team that is strong enough to weather this storm,” he said.
“We know what we need to achieve, and at the same time, we treat our staff, partners, and the community with the respect they deserve," he added.
Izzam also announced that CMSB is taking a major step forward in its sustainability journey by fully embracing environmental, social, and governance (ESG) reporting for the first time this year, in compliance with Bursa Malaysia’s mandatory requirements.
He emphasised that the team had invested considerable time and effort to ensure the accuracy and transparency of its reporting, reflecting the company’s long-term commitment to responsible business practices.
“We will make sure that we report accurately, and accordingly, this is how we continue to move forward, despite all the noise around us,” he said.
On March 5, CMSB deputy chairman and director Datuk Seri Mahmud Abu Bekir Taib filed an originating summons in the Kuching High Court seeking the right to inspect the books and records of the company and five subsidiaries.
Subsequently, it was reported that CMSB had initiated legal action against Mahmud Abu Bekir and six others.
Read also:
Cahya Mata Sarawak suit: Abu Bekir Taib-Karl Vink connection back in the spotlight
Cahya Mata Sarawak sues deputy chairman Abu Bekir Taib, five others over failed project
Cahya Mata Sarawak sued by deputy chairman over account inspection request
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