Logo of Phnom Penh Post newspaper Phnom Penh Post - New S’ville steel plant to support construction, decrease imports

New S’ville steel plant to support construction, decrease imports

A bird’s-eye view of Sihanoukville, home to several Special Economic Zones (SEZ), in September. SUN CHANTHOL VIA FB
A bird’s-eye view of Sihanoukville, home to several Special Economic Zones (SEZ), in September. SUN CHANTHOL VIA FB

New S’ville steel plant to support construction, decrease imports

The Council for the Development of Cambodia (CDC) has approved the establishment of a $40 million steel factory by Huale Steel (Cambodia) Co Ltd in Sihanoukville Special Economic Zone to push up production to meet the development of the construction sector.

The approval, which was given on September 20, would see the creation of 523 jobs.

Speaking to The Post on September 21, Cambodia Constructors Association general manager Chiv Sivpheng said the increased investment flow via the steel processing plant would have a positive effect on the economy.

This includes employment, reducing the cost of transportation from abroad, and particularly lowering the cost of construction, he said, adding that the local steel plant would help accelerate the growth in the construction sector in Cambodia.

“We welcome more investments in processing steel to supply in the construction sector because it helps the construction sector become stronger and less dependent on imported products,” he said.

Commenting on the construction and real estate sectors, Sivpheng said the construction sector is gradually improving as investments in the industry are now underway for a number of major projects, which is very different from the “relatively quiet period between 2020 and 2022”.

“In the last few months, I have seen a number of new construction projects, most of which are owned by foreign investors,” he said.

Huy Vanna, secretary-general of advisory firm Housing Development Association of Cambodia, said after a sharp surge, the construction sector in Cambodia plummeted with the arrival of Covid-19, with many construction activities suspended. However, things have “started to get a little better” as the threat of Covid-19 tapered.

The sector now features housing development by local developers which are built to meet the needs of local people. Currently, most of the construction materials, including the steel used in the construction sector in Cambodia are imported from Vietnam, China and Thailand.

“The presence of local products would help reduce the dependence on imported products, and would slightly lower construction costs as well,” Vanna said.

According to the General Department of Customs and Excise of Cambodia, in the first eight months of 2023, Cambodia disbursed $254.4 million on iron and steel imports, an increase of 3.9 per cent compared to $244.8 million in the same period in 2022.


  • Tensions high ahead of historic Kun Khmer match up

    The long-awaited November 5 matchup between Kun Khmer legend Prum Samnang and Myanmar-Canadian boxer Dave Leduc has become the most anticipated fight of the year. The Wurkz Sena Kun Khmer promotion, which will be held at the Town Arena at Chip Mong 271 Megamall, will see six

  • Manet: Cambodia safe for travel

    Prime Minister Hun Manet acknowledged that Cambodia and China have cooperated to tackle internet scamming, fraud and other cross border crimes, but insisted that the “Kingdom of Wonders” is completely peaceful and safe. He welcomed tourists to come and explore its rich heritage. During a

  • UNESCO formally list Battambang gastronomy

    Battambang, renowned for its cultural heritage, has achieved a significant milestone as the first Cambodian municipality to join the UNESCO Creative Cities Network (UCCN). The UCCN unites nearly 300 cities prioritising creativity and cultural industries in local development plans and international cooperation. On World Cities Day,

  • Cambodia pivots to solar, wind energy

    Cambodia is planning a move towards solar and wind energy to meet its rising power demands, according to Minister of Mines and Energy Keo Rottanak. On the sidelines of the Singapore International Energy Week event held recently, Rottanak emphasised the urgency of diversifying Cambodia’s

  • Angkor causeway symbol of Cambodia-Japan ties

    In a historic moment marking another milestone in the 70-year-long diplomatic relations between Cambodia and Japan, King Norodom Sihamoni celebrated the formal inauguration of a causeway located to the west of the world-renowned Angkor Wat. While presiding over the November 4 ceremony, the King emphasised the

  • Manet calls for Cambodia’s railways to get back on track

    Prime Minister Hun Manet has instructed the relevant authorities to expedite studies into upgrades to the Phnom Penh to Preah Sihanouk railway line. He suggested that the maximum speed on the line should be increased to 80km/h, in order to expedite the transportation of