KUALA LUMPUR: CMS Cement Industries Sdn Bhd (CCI), a wholly-owned subsidiary of Cahya Mata Sarawak Bhd (CMSB), has adjusted the price of cement by 10 per cent effective 17 February 2022 due to the rising cost of raw and packaging materials and freight charges.
Cement production costs have risen by an average of 9 per cent over the past years, and given the present macro-environment, CCI anticipates production costs to increase further.
Following the price adjustments, the average unit price of cement in Sarawak remains competitive compared to other regions in Malaysia, particularly now that cement prices in both Sabah and Peninsular Malaysia have been increasing over the last several months, according to the company in a statement.
Since 2016, CCI has maintained the selling price of cement and absorbed any increases in production costs due to its commitment to supporting the development and growth of Sarawak's infrastructure. Still, the recent rise in costs makes increasing the price of cement unavoidable to sustain the quality of its products and services.
CCI has had to raise the price of cement after absorbing cost increases over the last six years as there has been a steep rise in global dry bulk freight rates, with the benchmark Baltic Dry Index showing rates having risen by 64 per cent in 2021 while the sack kraft paper index
has increased by 33 per cent during the same period, which has increased packaging costs for the cement industry.
CCI can provide customers with a range of cement product types to meet their various project requirements at different price points through these product offerings.
CCI intends to maintain its customer-centric and supplier-focused role as the leading provider of quality cement in Sarawak while sustaining excellence in operations.
Moving forward, CCI plans to further expand its range of eco-friendly cement products in the market.
CMSB remains committed to supporting Sarawak's development plans, including the vision of becoming a developed state by 2030.
As one of the key local private sector investors and a major supplier of construction materials and services in the state, CMSB reassures all stakeholders that the price adjustment was implemented only after careful deliberations.