Logo of Phnom Penh Post newspaper Phnom Penh Post - Local cement market impervious to virus fears, insiders say

Local cement market impervious to virus fears, insiders say

Content image - Phnom Penh Post
Construction workers at a site in Phnom Penh. The impact of the novel coronavirus outbreak on the consumption of cement and other construction materials in the Kingdom has been minimal, industry insiders say. Hin Pisei

Local cement market impervious to virus fears, insiders say

The impact of the novel coronavirus outbreak on the consumption of cement and other construction materials in the Kingdom has been minimal, industry insiders say.

There are reasons to remain optimistic about the future of the construction sector in Cambodia with demand for construction materials still robust, according to Kampot Cement Co sales and marketing director Wirot Phanitphotchamarn.

Kampot Cement Co, a subsidiary of Thailand’s Siam Cement Group (SCG), is one of the oldest cement manufacturers in the Kingdom and an industry leader.

Wirot told The Post there are no signs Covid-19 or the global economic slowdown is dampening demand in the local construction industry.

“Demand remains strong for cement and building materials due to infrastructure development, urbanisation, long-term investment, and family and population growth. We believe the Cambodian economy will continue to grow strongly in the long term.”

Kampot Cement says it will not lower the price of its products in places like Siem Reap and Sihanoukville, where Covid-19 fears have slowed the flow of tourists, arguing that the market remains strong.

“We are not concerned about the price as it is a matter of demand and supply. SCG focuses on quality and value,” he said.

SCG has a 90 per cent stake in Kampot Cement. The remaining stake is held by local firm Khaou Chuly Group.

Secretary-General of Cambodia Cement Manufacturers Association (CCMA) Puth Chandarith told The Post last week that there has been a small downturn in construction activity in Sihanoukville as a result of the Chinese leaving the city.

However, CCMA members are not too concerned, he said.

“Our members held a meeting recently, but no one expressed any worries,” he said, adding that the association’s members do not intend to lower their prices.

A sales representative of Chray Sokun Construction Materials Depot, a firm based in Kandal province’s Sa’ang district, said the price of cement in the market has not changed.

She said her depot has placed orders for three types of cement: ‘K-cement,’ a product of Kampot Cement that sells for $103 per tonne; ‘Camel Cement Products’ of Chip Mong Insee Cement, which sales for $101 per tonne; and ‘Conch’ of Battambang Cement, selling for just over $90 a tonne.

Cambodia has five cement factories – Kampot Cement Co Ltd, Chip Mong Insee Cement Corporation, Cambodia Cement Chakrey Ting Factory Co Ltd, Battambang Conch Cement Company Limited and Thai Boom Roong Cement Co Ltd.

Together, these factories can produce about eight million tonnes of cement annually. The Cambodian market demands about nine million tonnes every year.

The Ministry of Land Management, Urban Planning and Construction last year approved 4,446 construction projects, worth a combined $9.3 billion and occupying 18.54 million square metres.

MOST VIEWED

  • Cambodia armed with money laundering laws

    Money laundering will now carry a penalty of up to five years in prison while those convicted of financing terrorists will be jailed for up to 20 years, according to new laws promulgated by King Norodom Sihamoni and seen by The Post on Thursday. Comprising nine

  • Schools to be reopened in ‘three stages’

    With guidance from Prime Minister Hun Sen, the Ministry of Education, Youth and Sport, is in the process of reopening schools in three stages. But no timeline has been set, ministry spokesperson Ros Soveacha said on Thursday. Soveacha said the first stage will be to

  • Thai border crossings eased

    The Cambodian Embassy in Thailand said in an announcement on Wednesday that Thailand’s government has allowed certain passengers from several countries to enter its borders. The visitors must go back to their country immediately after their duties in Thailand are fulfilled, the embassy said.

  • Gov’t says tourism recovers slightly despite pandemic

    The Ministry of Tourism and the Phnom Penh municipal administration have recognised 33 tourism businesses in the capital which have consistently implemented safety measures for tourists and adhered to the code of conduct issued by the ministry. Recently, the ministry announced that tourism businesses had to

  • Mull ASEAN border opening, PM urges

    Prime Minister Hun Sen has requested that ASEAN launch a scenario for gradually reopening cross-border travel and trade between countries in the region. He said ASEAN has had more success combating Covid-19 compared to other regions. The prime minister’s request was made at the

  • Ministry reports 11 new Covid-19 cases, reiterates vigilance

    Minister of Health Mam Bun Heng has urged people to continue practising virus prevention techniques after 11 people tested positive for Covid-19 within two days after arriving in the Kingdom. Speaking on Sunday, Bun Heng stressed the importance of washing hands, wearing masks or scarves when

  • Nine on Indonesia flight Covid-19 positive

    The Ministry of Health on Saturday confirmed nine more imported cases of Covid-19. The nine ‒ eight Cambodians and one Indonesian, aged 22 to 26 ‒ arrived in Cambodia on Thursday via a direct flight from Indonesia and are receiving treatment at the Khmer-Soviet Friendship Hostipal in Phnom Penh.

  • Kingdom’s financial sector healthy

    Cambodia's financial sector remains on a sustainable growth path despite the Covid-19 pandemic squeezing crucial industries, National Bank of Cambodia (NBC) governor Chea Chanto said. Tourism, garments and footwear have borne the brunt of the Covid-19 impact, he said, whereas the financial and agriculture sectors

  • Vietnam told to remove border tents

    Kandal provincial governor Kong Sophoan has ordered local authorities to prohibit the construction of buildings in areas bordering Cambodia and to report any irregularities immediately. Recently, Vietnamese officials removed another seven tents from the border area with Cambodia. His remarks were made on Wednesday afternoon

  • Migrant workers set to return from Malaysia

    The Ministry of Foreign Affairs and International Cooperation confirmed on Thursday that 158 Cambodian students and migrant workers will fly home from Malaysia on Friday morning. This is the second flight to bring Cambodians home from Malaysia. A ministry notice said Malaysia Airlines Flight MH754 will