SARAWAK’S INNOCEMENT SIGNS MOU WITH TWO ASEAN CEMENT SUPPLIERS
KUCHING, July 14 (Bernama) -- Innocement Sdn Bhd, a Sarawak government-owned company, has signed a memorandum of understanding with two Southeast Asia regional cement suppliers as part of the efforts to stabilise the price and supply of the building material in the state.
A joint-venture company of Sarawak Economic Development Corporation (SEDC) and Bintulu Development Authority (BDA), Innocement sealed the collaboration with SCG International of Thailand and YTL Cement Bhd, Malaysia’s largest cement manufacturer.
Sarawak Premier Tan Sri Abang Johari Tun Openg, who witnessed the signing ceremony, said the incorporation of Innocement last February was to strengthen the cement supply chain in the state, which only had one supplier all this while.
“It is therefore imperative for the development of Sarawak, to reduce the risk of total dependence on a single supplier and to create a healthy competitive environment, that we have to inject new blood into the state’s cement industry,” he said at the signing ceremony here today.
Abang Johari said Sarawak required a reliable and adequate supply of construction materials to ensure the timely completion of all the government projects as delays would result in additional costs and impact the lives of Sarawakians, especially for critical projects such as schools, hospitals and infrastructure.
He said shortages and supply disruption tend to escalate prices to the point that budgets need to be revised and additional funds required.
“Cement accounts for between three per cent to seven per cent of the construction costs. Concrete is among the most consumed material in the world. Cement is as basic to construction as rice is to our daily meals,” he added.
Signing the MoU was Innocement chief executive officer Suhadi Sulaiman and chairman Datuk Dr Mohamad Abdullah Zaidell; SCG International managing director Abhijit Datta and Siam Cement Public Company Ltd executive vice-president Thammasak Sethaudom; and YTL Group managing director Datuk Seri Michael Yeoh and director Joshua Yeo.
-- BERNAMA
