US$95 million cement plant planned for Battambang, Cambodia

Cambodia's annual cement production capacity, currently at about 8.9 million tonnes, is poised to receive a major boost after the Council for the Development of Cambodia (CDC) greenlit Dongfang Junma Cement Co Ltd’s US$95 million proposal for a new factory in western Battambang province near the border with Pailin.

The CDC on June 19 approved a final registration certificate for the cement factory, which the government agency said would create an estimated 979 jobs and be located in Phcheav village, Treng commune, Ratanak Mondol district.

Cambodian Cement Manufacturing Association (CCMA) secretary-general Puth Chandarith confirmed to The Post on June 20 that the kingdom’s five active cement factories have a collective annual capacity of 8.9 million tonnes, and that Dongfang Junma Cement’s new venture would likely join them as the sixth.

“Sixth”, despite Conch KT Cement (Phnom Penh) Co Ltd’s plans to build a $263 million cement factory in Horng Samnam commune, Oral district, Kampong Speu province with a two-million-tonne annual capacity, as disclosed by provincial governor Vei Samnang back in March 2021.

No updates on construction details or opening date for this project were immediately available.

Conch KT Cement is a joint venture between China’s Conch International Holding (HK) Ltd and local firm Battambang KT Cement Co Ltd.

The five existing cement factories, with cumulative investment capital of $800 million, are operated by Kampot Cement Co Ltd (SCG-K CEM), Battambang Conch Cement Co Ltd (Conch), Chip Mong Insee Cement Corp (CMIC), Cambodia Cement Chakrey Ting Factory Co Ltd (Huaxin) and Thai Boon Roong Cement Co Ltd.

According to the CCMA’s Chandarith, before the Covid-19 crisis, around two or three million tonnes of cement were imported each year, exclusively or primarily from Vietnam, China and Thailand, to meet the Cambodian construction sector’s annual demand of about 12 million tonnes, which has since dropped.

Ministry of Commerce statistics show that the kingdom imported $25 million worth of cement in 2022, down 43 per cent from $44 million a year earlier.