CMS in JV to build SEA’s first integrated phosphate complex in Sarawak

Cahya Mata Sarawak Bhd (CMS) via its subsidiary, Samalaju Industries Sdn Bhd (SISB), has entered into a joint venture with Malaysian Phosphate Venture Sdn Bhd (MPVSB) and Arif Enigma Sdn Bhd (AESB) to set up a RM1.04 billion integrated phosphate complex in Samalaju Industrial Park, Bintulu within the Sarawak Corridor of Renewable Energy (Score).

Cahya Mata Sarawak Bhd (CMS) via its subsidiary, Samalaju Industries Sdn Bhd (SISB), has entered into a joint venture with Malaysian Phosphate Venture Sdn Bhd (MPVSB) and Arif Enigma Sdn Bhd (AESB) to set up a RM1.04 billion integrated phosphate complex in Samalaju Industrial Park, Bintulu within the Sarawak Corridor of Renewable Energy (Score).

Group managing director, Datuk Richard Curtis said the plant will be the first integrated phosphate complex in Southeast Asia and the first non-metal or alloy-based plant in the Samalaju Industrial Park.

The project will leverage on the competitively priced long-term power supply and supporting infrastructure that have also drawn other energy-intensive industries to the park.

The company in a statement said that SISB and MPVSB will have a 40% stake in the new joint venture- Malaysian Phosphate Additives (Sarawak) Sdn Bhd (MPASSB) while AESB will hold the balance 20 %.

Construction work on the complex, strategically sited on a 141.64 hectare land close to the Samalaju deepwater port, which is currently being built, is expected to start in the first quarter of the year and will commence operation in phases beginning from the first quarter of 2016 and to be fully commissioned by the second quarter of 2018.

The new plant with an annual production capacity of some 500,000 metric tonnes of phosphate and related products will have close to 1,000 skilled workers and staff.

Phosphorus is an essential base nutrient for animal and plant growth and is widely used in food, feed and fertiliser products.

MPASSB executive director, Lim Lee Wan said the success of its first phosphate additives plant in Lumut, Perak has proved the value and scaleability of the company's particular manufacturing process.

Lim said the Sarawak phosphate complex would help to reduce imports of phosphate products and to expand the production of 'halal' animal feed and fertilizers in the country, paving the way for export-oriented downstream industries, going forward.

Adapted from StarBiz 1 Jan 2014

Posted on : 08 January 2014
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Last Updated : Tuesday 25th February 2020