KUALA LUMPUR (April 14): Cahya Mata Sarawak Bhd (KL:CMSB) said its wholly owned subsidiary Cahya Mata Cement Sdn Bhd is still awaiting regulatory approval from the Sarawak government to proceed with the construction of a second clinker production line in Mambong.

The group said in a brief update to Bursa Malaysia on Monday that further announcements on the matter will be made in due course.

Cahya Mata group general counsel Izzam Ibrahim said in Kuching two days ago the group is preparing to strengthen its position as the largest clinker producer in Borneo through the Clinker Line 2 project.

"In fact, we have lined up all the necessary manpower and procurement processes to kick-start the project," he was quoted as saying by Bernama.

Slated for completion in March 2027, the Clinker Line 2 project will add 6,000 tonnes of daily production capacity, effectively doubling the company’s annual clinker output from 900,000 tonnes to 1.92 million, according to the Bernama report.

Cahya Mata was in the news recently over its legal dispute with its deputy chairman, Datuk Seri Mahmud Abu Bekir Taib. On March 20, the group filed a lawsuit against Abu Bekir, alleging breaches of trust and fiduciary duties linked to a failed enterprise resource planning project under the group’s digital transformation programme.

The action follows a separate suit by Abu Bekir two weeks earlier, in which he claimed he was denied access to the group’s financial records despite being a director. He is seeking a court order to inspect the accounts of Cahya Mata and five of its subsidiaries.

Shares of Cahya Mata rose 5.5 sen or 6.32% to close at 92.5 sen on Monday, giving the group a market capitalisation of RM934.9 million. Year to date, the counter has fallen over 21%.

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