Chinese firm Huaxin Cement Co has purchased a 40 per cent stake in Cambodia Cement Chakrey Ting Factory Co, a cement-making factory currently under construction in Kampot province.
Huaxin’s $24 million investment Cambodia Cement lifted the local factory’s working capital to $60 million, up from $32 million, according to company representatives.
Ouk Bunseng, deputy manager of Cambodia Cement, said yesterday the deal would help to expedite the factory’s construction and pay back debts to the Bank of China.
“The total investment for the factory’s building is $100 million. We received $32 million from the shareholders and the other $67 million has been funded by Bank of China,” said Bunseng.
Cambodia Cement, which is reportedly 98 per cent complete and promises to produce more than 3,200 tonnes of the building material every day, is slated to commence operations in August.
“We will be the biggest cement producer in Cambodia,” Bunseng said.
According to industry website globalcement.com, demand for cement in Cambodia reached 2.5 million tonnes in 2010 with that figure said to be increasing at about 10 per cent annually.
The latest available government data shows Cambodia imported more than 816,000 tonnes of cement from Thailand, Vietnam and China during 2011. During the first six months of 2012, the Kingdom imported more than half that amount, 587,000 tonnes.
Cheng Kheng, chairman of real estate firm Cambodia Properties Ltd, called on future cement producer to ensure high quality standards to meet growing demand.
“It is good for the construction sector if there is a reliable local cement producer because we are seeing an increase in the amount of high rise buildings being built, which places huge demand for cement imports,” he said.
ADDITIONAL REPORTING RAINBOW LI
