Local cement plants expected to yield 20 million tons per year

Local cement plants expected to yield 20 million tons per year
As the construction sector rapidly grows, so does demand for construction materials and especially for cement.  Chip Mong Investment Co., Ltd., a subsidiary of Chip Mong Group, has announced that it can now produce up to 55,000 tons per day, with the potential to now reduce reliance on imported cement by between 26-28%. According to Chip Mong, the current plant has the capacity to produce 55,000 tons of high quality and standard cement per day and 1.6 million tons per year from local raw materials to supply the retail and industrial market. ​       Speaking at the annual anniversary of Chip Mong Investment Co., Ltd., CEO Aidan Lynam, said that due to the continued domestic need, the company will consider expanding its cement production capacity to meet market needs and looking toward being exported in the future. Cement is one of the most important construction materials in Cambodia, and together with a small number of steel factories.  The value of domestically-produced cement is generally more stable and reliable than imported products, according to James Hodge, deputy chief of CBRE Cambodia in a quote given to South East Asia Globe. Overseas-imported materials also add the risk of delays to a construction project, so domestic production is more convenient, with better predictable costs and lower risk for developers. However, according to James Hodge, domestic cement products cost US$ 90 per ton in 2017, compared to imported cement at an average of US$ 70 per ton in 2016. Nonetheless, the growth of domestic production is contributing to the stability of the construction industry with demand for construction materials up by 15% in 2018, and by 11% to date in 2019, according to an estimate by the National Bank of Cambodia. Cambodia currently has four cement plants: Kampot Cement, Cambodia Cement Chakrey Ting Factory, Chip Mong Insee Cement Corporation and Battambang Conch Cement Company Limited with annual production of 7 million tons production just to supply domestic demand. When two more factories including Southern Cement (Cambodia) Co., Ltd and Thai Boon Rong (Cement), which were completed in 2018, Cambodia’s annual cement production is expected to increase to up to 20 million tons.
អត្ថបទដោយ: Dara