Malaysia’s Cahya Mata breaks ground on Sarawak clinker expansion project

Malaysia-based Cahya Mata Sarawak Bhd has commenced construction of its Mambong Clinker Line 2 project in Sarawak, marking a major capacity expansion for the group's cement operations, the company said in a Linkedin post on Dec. 20.

According to the post, the project, with a total investment of about RM673 million ($165 million), will increase Cahya Mata Cement's clinker production capacity from 900,000 mt/year to 1.9 million mt/year. The new line is designed with a nominal capacity of around 6,000 mt/day and is expected to be commissioned in the second quarter of 2027, following an estimated two-year construction period.

Cahya Mata said the expansion is intended to strengthen cement supply security in Sarawak amid rising infrastructure and industrial activity, while reducing reliance on imported clinker and cement.

The clinker line will incorporate a waste heat recovery system with an installed power generation capacity of approximately 6 MW. The facility will also be equipped with enhanced dust filtration systems to help reduce emissions, the company said.

Group managing director Datuk Seri Sulaiman Abdul Rahman Taib said "This investment strengthens the foundation for the next phase of Cahya Mata's growth. The new line will allow us to operate with greater efficiency, adopt cleaner technologies and expand our production capabilities in line with Sarawak's long-term development trajectory."

Engineering, procurement, construction and commissioning works for the project have been awarded to Sinoma Industry Engineering (M) Sdn Bhd, a subsidiary of China-based Tianjin Cement Industry Design & Research Institute.

Platts, part of S&P Global Energy, assessed cement (ASTM type I) FOB Vietnam at $37/mt on Dec. 18, up from $36.5/mt the previous week. Platts assessed cement clinker FOB Vietnam at $32/mt on Dec. 18, up from $31.5/mt FOB the previous week.