Kota Kinabalu: An integrated clinker and cement plant will be built in Pinangah, Tongod, following a Joint-Venture Agreement (JVA) between Sabah Economic Development Corporation (Sedco) and Sri Alam Setia Sdn Bhd to set up Borneo Cement (Sabah) Sdn Bhd.
The project, estimated to cost RM1 billion, would ensure consistent supply and cheaper cement in Sabah, besides transforming Tongod through the creation of jobs and business opportunities as well as infrastructure development.
Chief Minister Datuk Seri Hajiji Noor witnessed the signing at Menara Kinabalu, Wednesday.
Sedco Chairman Datuk Rubin Balang and General Manager Haizar R H Ajaz Nabijan signed on behalf of Sedco, while Sri Alam Setia Managing Director Michael Kinsuan and lawyer Hassan Murtaza signed on behalf of the company.
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With Sabah’s current requirement at 1.4 million tonnes yearly, this project would not only meet immediate needs but also ensure future supply.
The project is set to transform Tongod, in line with the State Government’s aspiration to alleviate poverty by bringing in high-impact projects to create jobs.
The integrated clinker and cement plant is expected to create 1,000 jobs.
A Memorandum of Agreement (MoA) was also signed between Borneo Cement (Sabah) Sdn Bhd and Sinoma Industrial Engineering (M) Sdn Bhd, the world’s and China’s largest cement manufacturer and turnkey developer during the event.
Sinoma Industrial Engineering (M) Sdn Bhd has committed to complete plant construction within two years.
Chairman Datuk Masiung Banah signed for Borneo Cement (Sabah) Sdn Bhd, while Sun Jian, who represented Sinoma Chairman and Managing Director Liu Tao, signed for Sinoma.
Rubin said the Tongod integrated clinker and cement plant when completed, would complement the existing Cement Industries (Sabah) Sdn Bhd plant in Sepanggar here.
“The cement plant in Sepanggar will continue operations even after this Tongod integrated plant has been completed and operational ... so we will have two cement plants that can supply for the need in the State as well as neighbouring countries,” he said.
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