$95M cement plant planned for B’bang
$95M cement plant planned for B’bang
Cambodia's annual cement production capacity, currently at about 8.9 million tonnes, is poised to receive a major boost after the Council for the Development of Cambodia (CDC) greenlit Dongfang Junma Cement Co Ltd’s $95 million proposal for a new factory in western Battambang province near the border with Pailin.
The CDC on June 19 approved a final registration certificate for the cement factory, which the government agency said would create an estimated 979 jobs and be located in Phcheav village, Treng commune, Ratanak Mondol district.
Cambodian Cement Manufacturing Association (CCMA) secretary-general Puth Chandarith confirmed to The Post on June 20 that the Kingdom’s five active cement factories have a collective annual capacity of 8.9 million tonnes, and that Dongfang Junma Cement’s new venture would likely join them as the sixth.
“Sixth”, despite Conch KT Cement (Phnom Penh) Co Ltd’s plans to build a $263 million cement factory in Horng Samnam commune, Oral district, Kampong Speu province with a two-million-tonne annual capacity, as disclosed by provincial governor Vei Samnang back in March 2021. No updates on construction details or opening date for this project were immediately available.
Conch KT Cement is a joint venture between China’s Conch International Holding (HK) Ltd and local firm Battambang KT Cement Co Ltd.
The five existing cement factories, with cumulative investment capital of $800 million, are operated by Kampot Cement Co Ltd (SCG-K CEM), Battambang Conch Cement Co Ltd (Conch), Chip Mong Insee Cement Corp (CMIC), Cambodia Cement Chakrey Ting Factory Co Ltd (Huaxin) and Thai Boon Roong Cement Co Ltd.
According to the CCMA’s Chandarith, before the Covid-19 crisis, around two or three million tonnes of cement were imported each year, exclusively or primarily from Vietnam, China and Thailand, to meet the Cambodian construction sector’s annual demand of about 12 million tonnes, which has since dropped.
Ministry of Commerce statistics show that the Kingdom imported $25 million worth of cement in 2022, down 43 per cent from $44 million a year earlier.
Chandarith claimed that “all” local cement manufacturers are large multinational companies that pump out products which experts regard as being of a high calibre and conforming to recognised standards.
“Although I am unsure of the exact dates for the [Dongfang Junma Cement] plant’s construction and operation, its arrival will bring local production capacity to another level,” he stated.
The commerce ministry’s business registry notes that Dongfang Junma Cement was incorporated on May 28, 2020 and lists just one officer for the company, “Zhao Shouren”, a name shared by the most senior officer cited in the entry for the firm China Runji Zhong Hua (Cambodia) Cement Manufacturing Co Ltd with postal registered office address in China’s Zhejiang province. China Runji Zhong Hua was incorporated on January 17, 2020.
It was not immediately clear if the two “Zhao Shouren” were one in the same.
Housing Development Association of Cambodia (HDAC) secretary-general Huy Vanna remarked that construction activity is accelerating at a slower rate than it had in pre-Covid days.
He lamented that construction is now mostly focused on small residential buildings as opposed to the massive, foreign-owned structures that predominated the market prior to 2020.
“Even though the Covid-19 pandemic has subsided, the regional and worldwide economies are still under strain from the global economic crisis brought on by geopolitical conflicts among superpowers and the war between Russia and Ukraine. This has an impact on capital flows, which also affects the construction industry,” he said.
The Ministry of Land Management, Urban Planning and Construction approved a total of 4,275 construction investment projects in 2022 – down 28 projects or 0.65 per cent from a year earlier – with total registered capital of $2.968 billion, down 46.8 per cent on a yearly basis from $5.580 billion, according to data published by the Ministry of Economy and Finance.
The finance ministry’s statistics indicated that the housing segment represented 3,768 of the projects – up from 3,720 a year earlier – or an 88.14 per cent share of the total, up from 86.45 per cent in 2021.
The ministry broke down the 2022 approvals by category: residential (3,768), commercial (228), industrial (184), public (58), tourism (36) and other (1). The corresponding 2021 figures were: residential (3,720), commercial (301), industrial (184), public (47), tourism (49) and other (2).
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