Logo of Phnom Penh Post newspaper Phnom Penh Post - Cement plants churn out 7.9M tonnes

Cement plants churn out 7.9M tonnes

Content image - Phnom Penh Post
Cambodia’s five cement factories produced 7.9 million tonnes of finished product last year, marking a seven per cent gain from 2019. Hin Pisei

Cement plants churn out 7.9M tonnes

Cambodia's five cement factories produced 7.9 million tonnes of finished product last year, marking a seven per cent gain from 2019 even with myriad construction projects put on hold by Covid-19 throughout the year, according to Cambodian Cement Manufacturing Association secretary-general Puth Chandarith.

He told The Post on February 9 that growth in domestic cement production plays an increasingly important role in replacing imports, which are predominantly from Thailand, Vietnam and China.

“This seven per cent increase indicates that demand for cement remains high despite the fact that Covid-19 continues to spread,” he said, adding Cambodia’s cement factories are expected to produce even more this year, making a larger contribution to national economic development.

As capital investment remains on a robust growth trajectory, the Kingdom’s cement plans can now produce up to 10 million tonnes of cement per annum at full capacity, he said.

Nevertheless the spurt in domestic production was also partly due to global restrictions on the movement of people and goods to curb the spread of Covid-19, he added.

Cambodia Constructors Association general manager and secretary Chiv Sivpheng said that while larger construction projects – typically backed by foreign investment – were suspended, smaller ones – such as the residential buildings more often financed by locals – were not.

This drove up demand last year and contributed to growth in the sector, he said. “Domestic production during the period increased in almost all sectors, including cement. GDP [gross domestic product] growth, even in small amounts, is a positive sign for the Cambodian national economy,” he said.

Sivpheng said a trend of using local cement products was also on the rise among construction projects.

He said the capital investment behind the major construction projects approved by the Ministry of Land Management, Urban Planning and Construction last year reportedly decreased slightly from 2019.

Huy Vanna, secretary-general of advisory firm Housing Development Association of Cambodia, noted that borey gated housing community projects drove a hefty chunk of last year’s growth in domestic cement production, as did a restriction on imports.

Cambodia’s five cement factories are operated by Chip Mong Insee Cement Corp, Kampot Cement Co Ltd, Cambodia Cement Chakrey Ting Factory Co Ltd, Battambang Conch Cement Co Ltd and Thai Boom Roong Cement Co Ltd.

The factories have a total capital investment of $800 million, employ some 2,700 people and are able to produce eight million tonnes per year, Minister of Mines and Energy Suy Sem said at the November 14, 2019 inauguration ceremony of Thai Boom Roong Cement’s plant – the Kingdom’s fifth.

Capital investment in the Kingdom’s construction sector in the first nine months of 2020 fell 9.6 per cent to $5.868 billion from the $6.494 billion logged in the same period in 2019, the land ministry reported.

MOST VIEWED

  • Second Hungary business forum set for H2

    Cambodia has asked Hungary to provide GSP- (Generalised System of Preferences) Plus facilities for when the Kingdom sheds its least-developed country (LDC) label, as the two countries prepare to hold a second business forum in the second half (H2) of this year to expand trade

  • Capital-Poipet express rail project making headway

    The preliminary results of a feasibility study to upgrade the Phnom Penh-Poipet railway into Cambodia’s first express railway indicate that the project would cost more than $4 billion and would take around four years to complete. The study was carried out by China Road and

  • Thai boxers to join SEA Games’ Kun Khmer event

    The Cambodian SEA Games Organising Committee (CAMSOC) – together with the Kun Khmer International Federation (KKIF) and Khmer Boxing Federation – have achieved a “great success” by including Kun Khmer in the upcoming biennial multi-sports event on its home soil for the first time, said a senior

  • Bullets to bracelets: Siem Reap man makes waste from war wearable

    Jewellery is often made from valuable gemstones like emeralds or diamonds and precious metals like gold or silver, or valueless things like animal horns. But a man in Siem Reap has approached the manufacture of delicate pieces from a different angle. His unique form of

  • 61% of 2022 imports came from just 3 markets

    The three largest exporters to Cambodia – mainland China, Vietnam and Thailand – accounted for 60.94 per cent of the Kingdom’s total merchandise imports last year, at $18.245 billion, which was up 11.99 per cent over 2021, according to the General Department of Customs and Excise. Cambodia’s total imports

  • CPP sets out five primary strategic goals for 2023-28

    The Cambodian People’s Party (CPP) on January 29 concluded its two-day extraordinary congress, setting the party’s priority goals for 2023-2028. The ruling party’s congress was attended by more than 3,000 members from across the Kingdom, including the members of the permanent and central committees,