Cambodia: The Cambodian government is planning to cap the number of cement production licences after the opening of two new cement plants that are expected to start operations by the end of 2017, according to Hort Pheng, director of the Industrial Affairs Department at the Ministry of Industry. Pheng made his comments to the Phnom Penh Post newspaper in relation to Chip Mong Insee, a joint venture between Chip Mong Group and Thailand’s Siam Cement Group, and Battambang Conch Cement, a joint venture between Battambang KT Cement and China’s Anhui Conch. The new plants will join the country’s three existing plants operated by Kampot Cement, Cambodia Cement Chakrey Ting and Thai Boon Roong in Kampot province.
“Despite investors coming to ask us for potential locations for cement plants, the ones in Kampot and Battambang are enough. The other provinces lack the quality of limestone needed for cement production,” said Pheng. He added that, once all five plants were operational, they would produce almost enough cement to meet local demand. However, the local construction industry is expected to still need to import cement. Cement plants will be allowed to expand to meet this excess demand.
The 5000t/day Chip Mong Insee cement plant in Kampot is scheduled to open in October 2017. It had a budget of US$262m. The 5000t/day Battambang Conch Cement plant in Battambang has reportedly encountered delays in its construction and it is uncertain whether it will be completed by December 2017. Once open the plant plans to supply the domestic market first, before considering exports to Vietnam, Laos and Thailand.
