CAHYA MATA SARAWAK ANNUAL REPORT 2016

A N N U A L R E P O R T 2 0 1 6 Section 03 P E R F O RMA N C E 2 0 1 6 21 Cahya Mata Sarawak Berhad In FY 2016, two mobile premix plants with a capacity of 150 MT and 100 MT per hour respectively were purchased. These mobile premix plants will be set up at Limbang and Samalaju this year to meet increasing demand within these regions. An existing 40 MT per hour mobile premix plant at Limbang will be mobilised on a project basis. The Division plans to further expand its premix capacity by purchasing two additional mobile batched premix plants for the Pan Borneo Highway project. WIRE OPERATIONS CMS Wires Sdn Bhd manufactures steel drawn wires and wire mesh for the local construction industry. Its sole 5,500 MTpa plant produced 4,150 MT of steel wires and mesh in FY 2016. The Company continues to operate in an increasingly competitive environment with approximately 20% market share. As at December 2016, there were 11 wire mesh manufacturers in Sarawak, a huge number given the relatively small market. TRADING OPERATIONS CMS Infra Trading Sdn Bhd is a distributor of a varied range of products and services related to water treatment, electrical and construction materials. The Company remained profitable in FY 2016, registering strong sales for its water management products, which contributed more than 80% the Company’s profits. Strong sales were also recorded for its road management and maintenance offerings such as its road line painting, road furniture and fittings. In FY 2016, the Company successfully renewed all of its six Supply Term Contracts with JKR Sarawak for the supply and delivery of various water management products to JKR Central Unallocated Stores. The contracts, with a combined estimated contract value of RM106.60 million are for another two-year period on an “as and when required” basis. During the year under review, the Company successfully secured several sizeable new supply contracts through competitive bidding for Sarawak Energy Berhad and JKR Sarawak jobs plus renewed a water chemical supply contract with LAKU Management. CMS Infra Trading has added a new line-up of offerings including high-performance LED High Mast Lighting System, Solar-Powered Streets Lighting System, Street Lighting SON Lanterns and Molecor Hypro PVC-Water Pipes to its existing product lines. The Company will continue to explore long-term opportunities to further expand its product range and customer base.