New cement factory to boost Sabah’s economy, potentially export cement: Hajiji

Aiming to be operational in 2026, chief minister confident it will end state’s dependence on imported cement

9:00 PM MYT

 

TONGOD – Sabah may no longer need to rely on imported cement once the state’s largest integrated clinker and cement factory in Kawayoi Pinangah, here, is operational in 2026.

Sabah Chief Minister Datuk Seri Hajiji Mohd Noor, who graced the groundbreaking ceremony today, said that not only will Sabah be able to supply cement for infrastructure development, but there may also be sufficient supply for exports.

“Once operational, the new factory will complement the existing Cement Industries Sabah (CIS) Sdn Bhd factory.

“I believe that this new factory will not only boost our cement production but also allow us to export cement. This is yet another government initiative aimed at accelerating Sabah’s economic growth and attracting investors.”

The construction of the factory is estimated to cost RM1.2 billion, and construction works are expected to start in June.

The clinker and cement plant is a project undertaken by local company Setia Alam Sdn Bhd in collaboration with state-owned Sabah Economic Development Corporation, with investments from China-based Sinoma Bhd.

Hajiji said the government chose the location to set up the factory after taking into consideration the availability of the resources to produce cement in that area.

As for the people in the remote district of Tongod, the project brings hope that it will lead to better infrastructure, roads, electricity supply, a water treatment plant and internet connectivity.

Kuamut assemblyman Datuk Masiung Banah said he is thankful that his constituency has been chosen, as the people are desperate for development.

“This is the only chance for rural areas to see infrastructure development. There will be water supply and roads.

“To eradicate poverty, we need to create a sustainable economy. The only way to ‘free’ the people in Tongod from poverty is through industrialisation, which will create jobs for locals.”

The factory is expected to create 1,000 jobs, which Masiung hopes will be filled by Tongod locals.

“However, I would like to remind the Sabah government and Borneo Cement Sabah Sdn Bhd to monitor the project and ensure it will not become a white elephant.

Meanwhile, Hajiji presented 83 land grants, with a total acreage of 461.1 (186.06 hectares) to the recipients from Kg Kuamut (27), Kg Penangah (21), Kg Entilibon (25) and Kg Mananam (10). – April 27, 2024

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