KOTA KINABALU: An integrated clinker and cement plant will be built in Pinangah, Tongod, following a joint-venture (JV) agreement between SEDCO and Sri Alam Setia Sdn Bhd today.
SEDCO chairman Datuk Rubin Balang and general manager, Haizar R.H Ajaz Nabijan signed on behalf of SEDCO, while Sri Alam Setia’s managing director Michael Kinsuan and lawyer Hassan Murtaza signed on behalf of the company.
A company Borneo Cement (Sabah) Sdn Bhd will be set up to spearhead this project.
Chief Minister Datuk Seri Panglima Haji Hajiji Haji Noor witnessed the signing ceremony of the JV agreement at Menara Kinabalu here.
The project will ensure a consistent supply and cheaper cement prices in Sabah.
The clinker and cement plant will be built in Tongod, providing access to 5,000 tonnes of clinker per year – equivalent to 1.75 million tonnes of cement annually.
With Sabah market’s current requirement at 1.4 million tonnes per year, this project will not only meet immediate needs but will also ensure future supply.
And, 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 job opportunities.
The integrated clinker and cement plant is expected to create 1,000 jobs for the local community.
A Memorandum of Agreement 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.
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.