Citing the example of Bahrain in which the setting up of an aluminium smelter allowed for the diversification of its economy from a heavy dependence on oil and gas, CMS Group Managing Director, Dato’ Richard Curtis, explained that Similajau could expect an unprecedented economic boom with the setting up of the SALCO smelter.

The SALCO smelter, to be operated by an unincorporated joint-venture between Cahya Mata Sarawak (CMS) and leading aluminium producer, Rio Tinto Alcan, will be located at Similajau, 60 km to the north of Bintulu town in Sarawak. Similajau’s location between the source of raw materials in Australia and proximity to surging end-user markets in East Asia is also an attraction for aluminium downstream businesses to locate there.

“The SALCO smelter will be the catalyst for an unprecedented construction boom at Similajau. Apart from various downstream industries for the manufacture of semi-finished and finished aluminium products, we expect a hive of activity from the construction of supporting infrastructure and township,” said Dato’ Richard during his presentation entitled “Business Opportunities Around the SALCO Smelter”.

A wide range of aluminium downstream industries are poised to result from the SALCO smelter. These include plants to manufacture aircraft, automobile and commercial transportation parts, as well as beverage cans, aluminium foil and packaging, building structures and materials, and electrical cables.

The construction of supporting infrastructure to the smelter would also result in business opportunities for local small-medium scale enterprises and industries (SMEs and SMIs) which could participate in the construction of roads, the deep-water port, the township and social amenities, utilities (such as water, gas, electricity), and transmission lines.

With an initial annual capacity of between 550,000 – 720,000 tonnes, the SALCO smelter is expected to contribute an estimated RM2.4 billion to Malaysia’s GDP as well as convert Malaysia from an importer of aluminium into an exporter of the widely used metal.

Apart from opportunities for businesses, the smelter will also have a positive impact on employment. It is estimated that approximately 6,000 people will be involved during construction of the smelter. Some 1,500 people and 400 contractors are expected to be directly employed at the smelter, with a further 5,600 people employment indirectly.