Meeting Sabah’s cement demand
Published on: Sunday, June 16, 2024
By: Hayati Dzulkifli
Awang (fourth right) showing two certifications issued by CREAM and CIDB which he received from Nazri (fourth left) while Georgianne (left), Ambrose and others look on.
Kota Kinabalu: Sabah-based Makin Teguh Sdn Bhd (MTSB) that owns Sabah’s first and only private integrated clinker and cement Plant (ILPP) in Lahad Datu can now sell its cement.
It obtained certification from Construction Research Institute of Malaysia (Cream) under Construction Industrial Development Board (CIDB) Malaysia on Friday.
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MTSB Director Dato’ Awang Bin Ahmad @ Awang Ariffin said it was earned after requisite product testing and audit of the plant’s facilities.
The certification marks an important milestone for the local construction Industry with the emergence of local production of cement using local natural resources which is poised to meet demand in the East Coast.
It can produce 230,000 metric tonnes of cement in a year. “MTSB hopes to cater for the local demand and ensure no shortage in the East Coast,” he said.
“We started building this plant in 2022 but we started commissioning and operating last year.
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“Although we started production we have not really been selling the products in the market as we were waiting to be issued with the certifications from CIDB.
“The certifications prove our products have gone through the vital processes and are in compliance with regulations and laws under CIDB,” said Awang, also a Bumiputera developer and contractor. CIDB Sabah Director Nazri Zakaria presented the certs.
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“The outlook for Sabah’s clinker and cement industry is favourable given the high cement prices in Sabah compared with the rest of Malaysia and ILPP’s proximity to the Brunei – Indonesia – Malaysia – Philippines East Asean Growth Area (BIMP-EAGA).
“The already high price of cement in Sabah has been made worse in recent months due to the drastic increase in logistics costs and recent all-time high in foreign exchange rates, given that the USD is currently trading at 1USD to RM4.70.
“This is why the commencement of operations of Sabah’s only integrated Cement Manufacturing Plant is a timely one as our beloved state can no longer afford to rely on 100pc imported clinker and cement,” he said.
According to studies, Awang said Sabah has an annual demand of between 1.2 million to 1.4 million metric tons of cement per year.
“These numbers do not include future development projects on the East Coast and the implementation of new projects.
To a question, Awang said the demand for cement in the East Coast of Sabah is 400,000 metric tonnes and MTSB’s plant aims to complement the government to meet some of the demand.
According to him, MTSB spent huge sums on its own to upgrade and maintain the surrounding infrastructure including construction of a bridge over the Taliwas River in order to reduce transportation cost.
“In addition to this, the company constructed an Electricity Reticulation System on a private funding basis to feed our plant and are in the process of adding to the power and energy requirements through addition of solar power.
“This is envisaged to reduce the plant’s overall Carbon Footprint. Being a local investor, MTSB had taken a proactive role in upgrading the necessary infrastructure which was needed,” he said.
Awang said that as a Sabahan Company, MTSB recognised that this industry would face challenges given the lack of infrastructures and electricity.
However, he added the company had taken a long term view that this were necessary sacrifices required not only to build a plant but a ‘New Industry’ for Sabah which was spearheaded by and financed by Sabahans.
“It is normal for any new Industry to face teething problems but with time we are confident of improving our service to our customers and hope that MTSB can make a positive impact to the local construction Industry.
“We originally planned to run the plant with a larger team from China, but after the first year, our Chinese Technical Team were very impressed with the local team and decided to recruit more local workforce and give them on the job training using a mentor-mentee and apprenticeship training model scheme.
“Future plans will see getting more local Bumiputras to participate in the cement industry in line with the Chief Minister’s vision,” Awang said.
Also present were Palm Oil Industrial Cluster (POIC) Sabah Sdn Bhd Chairman Datuk Seri Yong Teck Lee, Borneo Oil Berhad Managing Director Datuk Joseph Ambrose Lee, its Executive Director Georgianne Lingam, MTSB Directors - Steven Yong, and Dyidriyah Gapang, and others.
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