Sabah inks deal to set up cement plant in Tongod’s interior

KOTA KINABALU – An integrated clinker and cement plant will be established at Pinangah in Sabah’s Tongod district as a result of a joint-venture agreement between the Sabah Economic Development Corp (Sedco) and Sri Alam Setia Sdn Bhd. 

The initiative will lead to the formation of Borneo Cement (Sabah) Sdn Bhd that will head the project’s development. The primary goal of the undertaking is to keep cement supply consistent and cement prices low. 

Chief Minister Datuk Seri Hajiji Noor presided over the signing ceremony for the agreement at Menara Kinabalu here today.

Representing Sedco, its chairman Datuk Rubin Balang and general manager Haizar R.H. Ajaz Nabijan signed the agreement. On the other side, Sri Alam Setia’s managing director, Michael Kinsuan, and lawyer Hassan Murtaza signed on behalf of the company.

The planned clinker and cement plant, to be located in Tongod, will have the capacity to produce 5,000 tonnes of clinker annually, equivalent to 1.75 million tonnes of cement each year. 

Considering that the current demand in Sabah is 1.4 million tonnes annually, this project not only fulfils immediate needs but also secures future supply.

Furthermore, the development aligns with the state government’s vision to uplift Tongod through job creations and ending poverty. 

Tongod is one of the poorest districts in the country. 

A statement released by the chief minister’s department today noted that the integrated clinker and cement plant would be able to create up to 1,000 local job opportunities.

In addition to the joint-venture agreement, Borneo Cement (Sabah) also signed a memorandum of agreement with Sinoma Industrial Engineering (M) Sdn Bhd, the largest cement manufacturer in the world and turnkey developer. 

Sinoma’s parent company is in China. It has committed to completing the plant’s construction within two years.

Chairman Datuk Masiung Banah signed the agreement on behalf of Borneo Cement (Sabah), while Sun Jian, representing Sinoma’s chair and managing director Liu Tao, signed for Sinoma. – The Vibes, August 2, 2023