CMS Reassures Market of Sufficient Cement Supply

Kuching (Sarawak), Sunday, 17 May 2020 – Following a recent outcry by some contractors that an inadequate supply of cement is hindering them from recommencing construction activities, Cahya Mata Sarawak Berhad (CMS or the Group) is stepping forward to reassure the market that there will be a sufficient supply of cement effective Monday, 18 May 2020.

In response to concerns by certain parties, CMS Group Managing Director, Dato Isaac Lugun had this to say: “We would like to reassure all construction players that an adequate supply of cement is being prepared for distribution to the market effective tomorrow and not after Gawai as inferred by some. In fact, as of 15 May 2020, the operation of the Group’s wholly owned subsidiary, CMS Cement Industries Sdn Bhd (CMS Cement or the Company) in Sibu was up and running in full compliance with all standard operating procedures (SOPs) outlined by the relevant authorities.”

“All the Company’s other cement production and distribution facilities are being prepared in full compliance with the stringent SOPS set and we anticipate that all our cement manufacturing operations throughout Sarawak will be in full swing by tomorrow. Barring unforeseen circumstances, this essentially means that the supply of cement will be made available to local businesses throughout Sarawak effective Monday, 18 May 2020 and not later as implied.”

Dato Isaac also went on to say, “The CMS Group realises its responsibility to provide an uninterrupted supply of cement to the state of Sarawak. In line with this, our business continuity plan mandates that we always have a minimum reserve stock of cement in our silos. Given that construction activities were not allowed during the Movement Control Order, this stock remains untouched and we are ready to meet the demand for cement once our operations commence.”

The CMS Group does not foresee any supply issues moving forward. Currently CMS Cement operates using a system of authorised dealers where it has over 25 dealers servicing its customers throughout the state. These dealers actually began taking orders from customers earlier last week. CMS Cement advises its customers to place their orders through their respective dealers and to ensure that their dealers in turn place their purchase orders accurately and in a timely manner with the nearest CMS Cement sales office.

The CMS Group operates production and distribution facilities in every major town within Sarawak. These include two plants in Kuching (the Mambong Integrated Plant and the Pending Grinding Plant), one plant in Bintulu (the Bintulu Grinding Plant), as well as bulk terminals in Sibu and Miri.

“Through our strategically located plants and terminals (all of which are outfitted with packing and bulk distribution capabilities), the market can rest assured that all of Sarawak’s main centres of economic activity, namely Kuching, Sibu, Bintulu, Miri, as well as the emerging markets of Samalaju, Mukah, Lawas and their hinterlands, will have a stable and sufficient supply of quality bag and bulk cement to meet their needs effective 18 May 2020”, added Dato Isaac.

CMS Cement produces the CEM 1 42.5N and 32.5N grades of cement. Through these products, it provides its customers a range of cement product types that meet general and specific project requirements at different price points. A third product, the premium grade 52.5N grade (MS EN 197-1 standard) Portland Cement, is produced for export purposes and to meet the needs of projects that have a specific need for a higher-grade cement.