CMS Cement increases price to offset production cost

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Curtis (centre) is seen with CMS Cement, CMS Clinker Sdn Bhd and CMS Concrete Products Sdn Bhd executive director and chief executive officer Goh Chii Bing (right) and Sulaiman.

KUCHING: Cahya Mata Sarawak Cement Sdn Bhd (CMS Cement), a wholly owned subsidiary of Cahya Mata Sarawak Bhd (CMS), has announced that in view of the increase in demand for construction raw materials spurred by the rapid development of Sarawak, it sees the need to increase the price of cement between five to nine per cent. This is to sustain its business and provide better services to its customers.

At a media briefing held here yesterday, CMS group managing director Dato Richard Curtis said: “CMS Cement has always, and still remains committed to the socio-economic growth of the state. From 2009 to 2013, CMS Cement has only increased cement price by only 5.2 per cent although production cost had increased by 14.5 per cent.

“Other than construction materials which have gone up 17 to 70 per cent, house prices has increased by 30 per cent.

Curtis said, although construction materials have gone in price and house prices increased, the company has absorbed most of the increases in cement production costs since the last five years, without compromising on international standards of quality.

“This is indicative of our vision to support Sarawak’s growth and development,” he added, giving assurance that the impact of this price increase would be minimal in terms of the overall construction cost of a property, as the cost of cement only equates to two per cent of the overall cost of construction.

He also said that the industry’s production costs have increased to 14.5 per cent over the last four years because of various factors which include the increase in maintenance and repair fee, the increase in shipping and packaging costs and other external factors.

These costs, Curtis said were cushioned by CMS Cement in order to provide affordable cement to its customers.

He said that it was not sustainable for CMS Cement to continue to absorb the increase in production costs and at the same time, continue to make the necessary substantial capital investments that would indirectly help the state to meet the growing needs for cement and pre-cast products.

He also pointed out that the price increase will only be effective on February 17, 2014.

“We are giving our customers the chance to purchase at the old price up to February 17, as this will give our customers the window to organise their businesses,” he said.

Touching on the price increase range of five to nine per cent, CMS Cement and CMS Concrete Products Sdn Bhd general manager of operations Suhadi Sulaiman explained that the prices will depend on the location.

“It is also a reflection that we are introducing a new pricing structure where there will be two-tier pricing for the two main products that we have, which is our bulk cement and barge cement,” Suhadi added.

CMS Cement is Sarawak’s sole cement producer and manufacturer. It has 25 dealers across the state.

Source From: Borneo Post Online

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