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New Kampot cement plant set to open

New Kampot cement plant set to open

A new cement plant will be online in Kampot province next month, bringing the total domestic cement production to more than eight million tonnes per annum.

The Thai Boon Roong Cement Co Ltd-owned factory – located in La’ang commune’s La’ang village in the province’s central Dang Tong district – will be inaugurated next month at a ceremony presided over by Prime Minister Hun Sen, provincial governor Cheav Tay said on Tuesday.

There are currently three cement factories operating in Kampot, and the launch of the fourth will increase the province’s production capacity up to 17,000 tonnes daily.

Tay told The Post on Tuesday that the new factory is capable of producing an average of 3,500 tonnes of cement per day. The factory is currently undergoing pilot testing, he said.

“This yield will contribute to reducing imports from abroad and creating jobs for the local people,” he said.

The factory is located in the Thai Boon Roong Special Economic Zone development project, which is on more than 100ha.

The company did not disclose the capital investment in the cement plant. Tay said: “So far, the company has not specifically reported any investment value to provincial authorities.”

The new factory will bring the number of cement factories in Cambodia to five – four in Kampot and another one in Battambang province.

Chip Mong Insee Cement Corporation public and government relations manager Tieng Sopheak Vichea on Tuesday said progress in the construction sector has steadily increased the demand for cement in Cambodia.

This year, the Kingdom’s demand for cement could be between eight and nine million tonnes, up from seven-to-eight million tonnes last year, he said.

“When the Thai Boon Rong factory officially opens, it will slash imports by a great amount, which means that we can be nearly 100 per cent self-reliant [with cement],” he said.

Data from the Ministry of Land Management, Urban Planning and Construction shows that in the first nine months of this year, capital investment in the Kingdom’s construction sector was worth around $6.49 billion, an increase of 34.73 per cent compared to the same period last year, at about $4.82 billion.

However, Cambodia still relies heavily on imports of other construction materials such as steel, while furniture is almost exclusively imported.

Vietnamese customs data shows that 37 per cent of that country’s total steel exports in the first seven months of this year went to Cambodia.

The Kingdom imported 717,572 tonnes of steel from Vietnam worth $462.73 million during the period.

Cambodia Constructors Association general manager and secretary Chiv Sivpheng said that as the Kingdom’s construction sector is booming, adding new production lines is key in reducing imports.

“Having more of such factories locally will reduce construction costs and provide more opportunities to develop affordable housing for people,” he said.

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