CAHYA MATA SARAWAK ANNUAL REPORT 2016

www.cmsb .com.my Section 03 P E R F O RMAN C E 2 0 1 6 Cahya Mata Sarawak Berhad 20 CONSTRUCTION MATERIALS & TRADING DIVISION THE GROUP’S CONSTRUCTION MATERIALS & TRADING DIVISION’S OPERATIONS REVOLVE AROUND QUARRYING, PREMIX MANUFACTURING, PAVEMENT LAYING SERVICES, THE PRODUCTION OF WIRE MESH AND COLD DRAWN WIRES AND THE TRADING OF CONSTRUCTION, ELECTRICAL AND WATER TREATMENT MATERIALS. IN FY 2016, THE DIVISION POSTED A PBT OF RM106.75 MILLION, CONSISTENT WITH THAT OF THE PRECEDING YEAR. REVENUE, HOWEVER, DROPPED TO RM581.06 MILLION IN FY 2016 AS COMPARED TO REVENUE OF RM712.06 MILLION IN FY 2015, THE RESULT OF LOWER GOVERNMENT FUNDING FOR ROAD MAINTENANCE ACTIVITIES. QUARRY OPERATIONS The Group’s quarry operations are undertaken by CMS Quarries Sdn Bhd and CMS Penkuari Sdn Bhd, companies that are involved in the production of crushed aggregates of granite, microtonalite and limestone types of stone. CMS’ quarrying operations today encompass five quarries, namely Stabar, Penkuari, Sibanyis, Akud and Sebuyau that have a combined rated capacity of 2.19 million MTpa. The Division plans to further increase its production capacity by installing a second production line at Sibanyis with a crushing plant capacity of 1.30 million MTpa. The second production line will be completed by 2018. This will enable CMS Quarries to continue providing an increased supply of quality crushed aggregates at competitive prices to meet growing market demand throughout Sarawak. In FY 2016, upgrading works on the jetty at Sebuyau’s quarry were completed and the loading capacity increased to 400 MT per hour. With a new telescopic conveyor system in place, the jetty will be able to cater for barges bound for international waters. The plannedwharf facility at Kota Samarahan underwent Stage 1 of construction, while the infrastructure works and ramp construction activities under Stage 2 will be completed by 2017. This will increase the Company’s loading capacity and speed up deliveries of crushed aggregates by barge to areas outside Kuching. The Company successfully attained re-accreditation for its Integrated Management Systems (IMS: ISO 9001:2008, ISO 14001:2004 and OHSAS 18001:2007) in September 2016. The upgrading of the ISO9001 and ISO14001 standards to the latest 2015 standard is scheduled for completion in FY 2017. PREMIX OPERATIONS CMS owns eight premix plants in Kuching, Sarikei, Sibu, Bintulu, Miri and Limbang through CMS Premix Sdn Bhd and CMS Premix (Miri) Sdn Bhd. With a combined rated capacity of 1,190 MT per hour, as well as a 10 MT per hour asphaltic bitumen batch plant in Kuching, these two companies account for approximately 60% of the asphaltic concrete (premix) and bitumen emulsion markets in Sarawak. 2.19 million MT per annum combined rated quarry production capacity