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Logo of Phnom Penh Post newspaper Phnom Penh Post - Chinese firm to build new factory in Kampot

Chinese firm to build new factory in Kampot

Chinese firm to build new factory in Kampot

China’s largest heavy machinery manufacturer has been awarded a $262 million contract to build a cement factory in the southwestern province of Kampot, according to an official at the Ministry of Mines and Energy.

CITIC Heavy Industries secured an engineering, procurement and construction contract from the joint venture between Thai cement firm Siam City Cement and Cambodian-owned Chip Mong Group. The two firms announced in September that they will build a 1.5-million-tonne cement factory to primarily supply the local market.

Meng Saktheara, secretary of state at the Ministry of Mines and Energy, told the Post yesterday that the agreement was signed on Saturday, in the presence of Mines and Energy Minister Suy Sem, and construction was expected to start soon.

Once completed and production begins, Saktheara said the cement factory will locally source materials, such as limestone, with the balance being imported from overseas.

The new factory, he added, will cater to the demands of the local market, as well as create jobs for local people.

“This factory will reduce the amount of products imported into the country, as well as help to boost competition in local market, provide capacity to export and compete with the regional market,” he said.

Siam City Cement in September approved a 40-per-cent stake in the joint venture company Chip Mong Insee Cement Corporation, which has a registered capital of $150 million.


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