A new cement factory is being built in Kampot which hopes to help meet domestic demand as the Kingdom’s construction industry grows.

The joint venture will cost more than US$100 million, said Ouk Bunseng, deputy plant manager for the Cambodia Cement Chakrey Ting Factory, with the Bank of China providing a $67 million loan and the remaining amount being supplied as equity.

Kampot governor Khouy Khunhour said the loan from China will accelerate the development of the cement factory, which is expected to be operational in 2014.

The new factory will occupy more than 40 hectares and will have the capacity to produce 3,200 tonnes per day or 1.1 million tonnes of cement each year, said Ouk Bunseng.

Government officials were uncertain of the local demand for cement but Ouk Bunseng said Cambodia’s demand is three million tonnes per year and now two million tonnes is imported from neighbouring countries. 

Construction of the factory will employ more than 1,000 Cambodian labourers and there are plans to send 50  workers to China for technical training.

“Our aim is to not recruit too many expats,” said Ouk Bunseng.

As yet there are no plans to export the cement as regional cement exporters have a surplus of capacity,

“I think in this region it would be very difficult to export. Perhaps Myanmar is an option but it’d be very difficult to be competitive with current suppliers,” said Ouk Bunseng.

There is one other cement factory in Cambodia in Kampot’s Toukmeas district, Kampot Cement, a joint venture with Thailand’s Siam Cement which has the capacity to produce 2,800 tonnes per day.

Prak Sokserey Vathana, Manger of Kampot Cement, said he doesn’t anticipate much competition between his factory and Chakrey Ting as the techniques and costs between the two are not very different.

To contact the reporters on this story: Erika Mudie at [email protected]

Rann Reuy at [email protected]