ASEAN countries may face cement shortages

ASEAN countries may face cement shortages

KUALA LUMPUR (AFP): A Malaysian minister has warned of a
cement shortage in ASEAN countries as planned construction
projects exceed the region's existing capacity, reports said
yesterday.

Minister of Domestic Trade and Consumer Affairs Abu Hassan
Omar said Malaysia and the other members of the Association of
Southeast Asian Nations (ASEAN) were likely to experience a
cement shortage as early as this year.

ASEAN also includes Singapore, Indonesia, Thailand, Brunei and
the Philippines.

Abu Hassan contrasted the booming region's estimated demand of
86 million tons this year with its total grinding capacity of 83
million tons.

In Malaysia, demand for cement was expected to grow by 14
percent this year to 11.4 million tons, he said.

"Since the industry is capital-intensive and the return to
capital investment is relatively low in the short term, there is
the need for the producers to work together to increase
efficiency and supply," Abu Hassan was Tuesday reported saying in
local news reports.

He said his ministry was willing to discuss business
incentives for raising production but ruled out a price increase
because of its effect on inflation.

The Cement and Concrete Association of Malaysia has asked for
a price hike to cover higher transportation and raw material
costs.

Malaysia currently has six cement plants and four grinding
plants. Four new cement plants are being built while three are
being expanded.