Notes to the Financial Statements - Cahaya Mata Sarawak Bhd

Clinker
CMS Cement owns East Malaysia’s sole clinker manufacturer,
CMS Clinker Sdn Bhd, which operates a plant at Mambong on the
outskirts of Kuching. With a current production capacity of 800,000
MT per annum, production meets 77% of the clinker demand from
CMS Cement’s plant in Kuching.
In 2011, CMS Clinker’s revenue rose 6% due to higher sales volume compared to 2010. The increased
sales volume was attributed to the better operational performance of the plant which resulted in a
higher production volume. CMS Clinker recorded a PBT of RM14.17 million for 2011,
a 16% increase from 2010.
In this industry, the three main factors contributing signifi cantly to a plant’s performance are the stability
of the manufacturing operations, maintaining continuous full production and lowering fuel costs.
Based on this, CMS Clinker has invested RM78 million in upgrading its plant to increase the existing
production capacity to 896,000 MT per annum and to modify the plant to run on locally mined coal of
lower calorifi c value. The plant upgrading is expected to achieve improved performance in terms of
reliability, effi ciency, lower fuel costs and thus, lower costs of production. The upgrading is scheduled to
be completed and commissioned by mid 2012.
Annual Report 2011 25