Follow us on Twitter Find us on Facebook

YTL CORPORATION

YTL SUSTAINABILITY

UTILITIES
YTL POWER INT.

CONSTRUCTION
YTL CONSTRUCTION

MANUFACTURING
YTL CEMENT

PROPERTY DEVELOPMENT
YTL LAND & DEV.

REIT
YTL HOSPITALITY REIT
STARHILL GLOBAL REIT

TECHNOLOGY
YTL E-SOLUTIONS

COMMUNICATIONS
YTL COMMS.
YTL BROADBAND

EDUCATION
YTL FOUNDATION
FROGASIA
FROG EDUCATION LIMITED

TRANSPORTATION
EXPRESS RAIL LINK

CARBON CONSULTING
YTL-SV CARBON

ENTERTAINMENT
KL PAC

RESTAURANTS
LOT 10 HUTONG
FEAST VILLAGE
SHOOK! SHANGHAI

SHOPPING
L0T 10 SHOPPING CENTRE
STARHILL GALLERY
WISMA ATRIA
NGEE ANN CITY
RENHE SPRING ZONGBEI
DAVID JONES
MYER CENTRE ADELAIDE
PLAZA ARCADE

HOTELS & RESORTS
YTL HOTELS

ADVOCACY PROJECTS
YTL CCW
EARTH HOUR

REWARDS
YTL PLATINUM PLUS


YTL Cement acquires remaining 50% of Pahang Cement

   
Kuala Lumpur, 12 September 2003

Perbadanan Setiausaha Kerajaan Pahang (PSKP), Pasdec Corporation Sdn Bhd (Pasdec) and YTL Cement Berhad (YTL Cement) today signed a Sale and Purchase Agreement (Agreement) for the purchase by YTL Cement of 50% of issued and paid-up share capital in Pahang Cement Sdn Bhd (Pahang Cement) for a total consideration of RM138,000,000 (US$36,311,000) to be satisfied by way of the issue by YTL Cement of 36,800,000 new ordinary shares of RM1.00 each at an issue price of RM3.75.

YTL Cement currently owns 50% of the issued and paid-up share capital of Pahang Cement and upon completion of purchase, Pahang Cement will become a wholly owned subsidiary of YTL Cement.

Pahang Cement was established in 1995 as a 50:50 joint venture between the State Government of Pahang Darul Makmur and YTL Cement. At the time the Pahang State Government participated through Pasdec, which was then a state owned entity, and PSKP. The purpose of the joint venture was to build and operate the proposed integrated cement plant to be located in Bukit Sagu, Kuantan. The plant, the first of its kind in the Eastern Corridor, became operational in May 1998. The sale of the Pahang Cement shares to YTL Cement and the corresponding issue of the YTL Cement shares to Pasdec and PSKP have been undertaken in order to facilitate the development of longer term strategies.

As explained by YAB Dato’ Seri Adnan bin Yaakob, Menteri Besar for Pahang Darul Makmur during the signing ceremony: “Today’s signing will mark another milestone for the State Government and Pasdec. Upon completion of the sale of the 50% equity in Pahang Cement to YTL Cement, both the State Government, through PSKP and Pasdec, will have a an equity interest of approximately 20% in YTL Cement. We see this as a strategic investment in a larger listed company with diverse business activities in the manufacture and supply of ordinary Portland cement, ready-mixed concrete and slag cement.”

“This investment will also allow the State Government to convert its unlisted securities in Pahang Cement into listed securities in YTL Cement and has the added benefit of providing future dividend streams. The sale of the State Government’s investment in Pahang Cement will, upon completion, also provide an immediate realisation of profit on sale of investment.”

Tan Sri Francis Yeoh Sock Ping, Managing Director of YTL Cement, commented on the success of the collaboration between the parties involved, saying: “Pahang Cement is a testament to the success of public and private sector co-operation, where each party’s strengths have been harnessed through intelligent partnership. The fruitful collaboration between the Pahang State Government and YTL Cement is now geared to continue into the future as PSKP and Pasdec become substantial shareholders in our Company. We anticipate that our partnership will continue to yield mutual benefits. For our part, YTL Cement remains committed to its long-standing policy of enhancing shareholder value in order to reward shareholders for their investment in our Company.”


Text of speech by Tan Sri Francis Yeoh:

----------------------------------------------------------

The Government of the State of Pahang Darul Makmur and YTL Cement Berhad entered into this joint venture 8 years ago with the goal of building and operating the first cement plant in the Eastern Corridor of Peninsula Malaysia.

The integrated cement plant at Bukit Sagu became operational on schedule in May 1998. It was constructed in a record 32 months by Syarikat Pembenaan Yeoh Tiong Lay, the construction arm of YTL Corporation Berhad, and every measure was taken to ensure that Pahang Cement would be the best facility in its class.

The leading German industrial plant manufacturers, KHD Humbolt Wedag and Siemens supplied the mechanical and electrical equipment and technology. And stringent quality control systems were put in place to produce cement of the highest quality, consistency and reliability.

Pahang Cement, as the first cement plant in the State, had a duty to spearhead and support the progress and growth potential of the region.

At its inception, the plant was intended to alleviate shortfalls in cement around the country and, in the longer term, to further develop and promote the domestic cement market. Despite the challenging market conditions that followed, an excellent operating track record combined with the high quality of its products ensured the continued profitability and strong financial profile of Pahang Cement. This could not have been achieved without the co-operation, expertise and unique abilities that each party involved has brought to this joint venture.

In conjunction, the strategic location of the plant at Bukit Sagu has enabled Pahang Cement to develop a strong niche position on the East Coast, leveraging on its ideal placement to capitalise on the growth potential of the region, as well as to supply national infrastructure projects. For YTL Cement, this joint venture enabled us to diversify our product range and to expand our geographical operations network.

Operational efficiencies, cost effectiveness and quality of products have seen Pahang Cement obtain awards which, to date, include MS ISO 9002 certification. In December 2001, the plant was also awarded ISO 14001 certification for Environmental Management Systems.

Today, we are blessed with the successes and achievements that this joint venture partnership has generated. Pahang Cement is a testament to the success of public and private sector co-operation, where each party’s strengths have been harnessed through intelligent partnership.

The fruitful collaboration between the Pahang State Government and YTL Cement is now geared to continue into the future as PSKP and Pasdec become substantial shareholders in our Company. We anticipate that our partnership will continue to yield mutual benefits. YTL Cement is a world-class organisation having been honoured with awards such as the overall winner of the inaugural Smart Investor-KPMG Malaysia Annual Shareholders’ Value Award 2001 and the Forbes Global 200 Best Under a Billion in 2002.

For our part, YTL Cement remains committed to this long-standing policy of enhancing shareholder value in order to reward shareholders for their investment in our Company. YTL Cement has paid dividends for 8 years and recently declared a 20 sen dividend for the 9th year giving a dividend yield of 5% based on yesterday’s closing price of RM4.00.

On this occasion I will also like to pay a special tribute to the undefatiguable Chief Minister of Pahang, Dato’ Seri Adnan for his dynamic leadership. His unwavering support for this project is deeply appreciated. He gives me and many other multinationals great comfort to invest in the State of Pahang.

I wish to thank all our colleagues at Pasdec, PSKP and the Pahang State Government for their unwavering support and dedication to the success of Pahang Cement and for their confidence in us.

Most of all, I thank God for blessing our partnership.

Once again, thank you and may God bless you.

Speech by Tan Sri Dato’ Francis Yeoh
Managing Director, YTL Cement Berhad
at the Signing Ceremony of the Sale and Purchase Agreement between
Perbadanan Setiausaha Kerajaan Pahang, Pasdec Corporation Sdn Bhd and
YTL Cement Berhad for the sale and purchase of
the remaining 50% equity in Pahang Cement Sdn Bhd
in JW Marriott Hotel, Kuala Lumpur
on 12 September 2003 at 4.30pm

NOTES:-
Pahang Cement
Pahang Cement Sdn Bhd (Pahang Cement) operates a state-of-the-art integrated cement plant in Bukit Sagu with the capacity to produce over 1.2 million tonnes of ordinary portland cement per annum. The plant incorporates innovative features such as the country’s first Gamma Metrics (CB-GN) cross belt analyser installed at its crushing plant. This unique equipment measures on-line elemental composition of the raw materials used in the cement manufacturing process and has the capability of providing up-to-the-minute analysis of raw materials supplied from the quarry.

This system has enabled the plant to automatically control and monitor the quality of materials from the quarry, hence eliminating any problems at the source itself. With this equipment, raw materials of consistent quality can be prepared at the initial cement manufacturing stage in order to ensure that cement of the highest quality is produced to meet product specifications and customer requirements.

Pahang Cement was awarded ISO14001 Certification December 2001, to complement its existing MS522:1989 and MS ISO 9002 certifications. Its products are marketed under the trade name “Orang Kuat”.


Back
 
    

SPEECHES

INTERVIEWS

THE OSLO BUSINESS FOR PEACE AWARD

TRANSPARENT COHERENT REGULATORY FRAMEWORK

PERSONAL AND SUSTAINABILITY AWARDS

TAN SRI FRANCIS YEOH'S BIODATA

 
 

Contact Us | Newsletter | Career | Privacy Policy
Twitter | Facebook
 
Terms, Conditions and Disclaimers
Copyright © 2001 - 2017 All rights reserved.
Powered by YTL e-Solutions Bhd.