Displaying items by tag: Malaysia

Malaysia: Malayan Cement recorded sales of US$192m during the third quarter of 2022, more than triple its third-quarter 2021 sales of US$63.6m. The company recorded a US$213,000 profit, compared to a US$5.29m loss in the corresponding quarter of 2021.

Malaysia: Borneo Oil has entered into a conditional share sale agreement with Makin Teguh's 45% owner Global 2332 to enlarge its stake in the cement company by 31%, to 60%. Borneo Oil has proposed a private placement to raise US$11.3m towards funding the US$21.2m deal. It previously completed a US$4.65m shares issue on 26 October 2022. Bernama Daily Malaysian News has reported that Makin Teguh plans to commence operations at its 220,000t/yr Sabah integrated cement and clinker plant in early 2023. It owns two limestone mines, with total reserves of 14.4Mt.

Malaysia: Cahya Mata Sarawak has informed its customers that its cement despatches will be 'back to normal' by 6 November 2022. The producer's closure of its 1Mt/yr Kuching cement plant for maintenance, followed by unexpected raw materials supply issues, has caused a shortage of cement in western Sarawak State. Bernama Daily Malaysian News has reported that a 14-day delay to raw materials deliveries to the Kuching plant ensued due to heavy rains.

The producer said “We would like to apologise for the shortage of cement, and will strive to ensure a steady supply of cement to all of our customers.”

Cahya Mata Sarawak has successfully maintained regular supply of cement to other areas of Sarawak, including Bintulu, Miri and Sibu, through despatches of cement from its Bintulu grinding plant.

Malaysia: Bank CIMB Group Holding Berhad has published sustainable finance targets for its lending to cement sector clients. Islamic Finance News has reported that the institution will reduce the emissions intensity of loans to cement producers by 36% to 720,000t per tonne of cementitious product by 2030 from 460,000 at present.

CIMB Group Holding Berhad recently doubled its sustainable finance target to US$13m by 2024, from US$6.48m.

Malaysia: Makin Teguh and Borneo Oil have held a ceremony to mark the firing up of the kiln at the 0.23Mt/yr ILPP cement plant being built in Sabah. The new plant is next to a limestone quarry owned by Borneo Oil and it is set to further benefit from the oil company’s other limestone assets via long term supply contracts, according to the Borneo Post newspaper. Borneo Oil increased its stake in Makin Teguh to 38% in May 2022.

A China-based supplier has built the new plant. It includes a waste heat recovery (WHR) unit and it reportedly the first integrated cement plant in Malaysia to use alternative fuels such as heavy fuel oil derived from refined recovered oils, palm kernel shells and bio char.

Vietnam: Cement producers and exporters will pay an additional 5 – 10% tariff on their exports of cement and clinker from 1 January 2023. Viet Nam News has reported that the move aims to bring down local cement prices by increasing supply in the country. These have risen over the past six months, while export prices have remained level.

The Vietnam National Cement Association (VNCA) says that its members are struggling to increase exports in a highly competitive export market. In the six months up to the end of August 2022, China, the Philippines, Bangladesh, Malaysia and Taiwan all reduced their imports of Vietnamese cement. The decline included a ‘substantial’ reduction of imports by China and the Philippines. Exporters faced logistical difficulties in shipping cement to the Philippines, while China’s consumption dropped due to new Covid-19 restrictions and low residential construction activity there.

The VNCA forecasts cement production of 108Mt in 2022, against a national demand of 65Mt. It projected that a series of infrastructure projects will bolster domestic consumption between 2022 and 2025.

Malaysia: Cahya Mata Sarawak says that it has no plan to double the capacity of its Bintulu, Sarawak, grinding plant, Reuters News has reported. The company, however, noted the potential ‘opportunity’ offered by the construction of a new Indonesian capital in Nusantara, East Kalimantan, on the opposite side of Borneo.

Malaysia: Hume Cement Industries Berhad recorded sales of US$117m in the first nine months of 2022, up by 4.7% year-on-year from US$112m. It recorded a loss for the period of US$415,000, down by 82% from US$2.27m. In the third quarter of 2022, Hume Cement Industries Berhad recorded a profit of US$438,000, compared to a US$2.69m loss in the third quarter of 2021.

Malaysia: Investment holding company Borneo Oil has concluded a deal with MT 23 Resources for the acquisition of a 22% stake in Makin Teguh.The deal will bring Borneo Oil's total holding in the cement company to 38%. Makin Teguh is in the process of establishing an integrated cement plant in the state of Sabah.

Borneo Oil said “There is synergy between the group's existing limestone quarrying business operations and Makin Teguh's clinker and cement plant. 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 its proximity to the East ASEAN Growth Area." It added “The Covid-19 shutdowns in 2020 and 2021 created an unprecedented urgency for Sabah to become more self-reliant in various sectors of economic importance. Sabah can no longer afford to rely on 100% imported clinker and cement, and, therefore, the setting up of a clinker and cement plant in Sabah is timely.”

Malaysia: Borneo Oil has increased its investment in the upcoming ILPP cement plant in Sabah to US$12m. The oil company has signed a deal to buy a 19.5% stake in the cement company from Makin Teguh. Borneo Oil previously bought shares from Makin Teguh in late 2021. The company said it is making the move to benefit from a positive outlook for the cement sector in the Brunei Darussalam–Indonesia–Malaysia–Philippines East ASEAN Growth Area. It estimates that Sabah has a demand of 1.2 – 1.4Mt/yr of cement.

Borneo Oil says it is the largest private owner of limestone reserves of cement grade quality in Sabah. The ILPP plant is located next to a limestone quarry owned by Borneo Oil and a long-term supply contract for the unit is already in place. The ILPP plant will have a cement production capacity of 0.2Mt/yr when it is completed. Commissioning of the plant is scheduled for the third quarter of 2022. The owners say it will be the first integrated plant in Sabah. It will also be the first micro-cement plant in Malaysia that will use heat recovery and a mixture of fuels, including heavy fuel oil and biomass such as a palm kernel shells.