Suva: An agreement for US$20million (FJ$37m) investment to build a second cement factory in Fiji was formalised in Suva yesterday.
The Ministry of Lands and Mineral Resources signed and handed over a lease agreement to Tengy Cement (Fiji) Company Limited for the new cement factory to be built in Veisari, Lami.
Tengy Cement (Fiji) Company Limited, a Chinese investment company was given consent by Government to secure a 99-year industrial lease to build Fiji's second cement factory.
Prime Minister Commodore Voreqe Bainimarama congratulated the company for its confidence to invest in Fiji.
He said the company would assist in national development particularly in the construction industry where cement was a major component for housing and business development.
“Already the cost of cement has decreased even before Tengy Cement (Fiji) Company Limited begins construction of the factory. This is already good news for the construction industry and the people of Fiji.” Commodore Bainimarama said.
Company director Bian Yu thanked the Fiji Government for her support and facilitation and in particular, the effort of the Prime Minister in promoting Fiji as an investor-friendly country in China.
“We are grateful to be involved in Fiji and we can only hope that we will expand our coverage to the Pacific,” Mr Yu said.
He said his company would do its best to “build a factory that will manufacture high quality cement with very low price.”
The factory is expected to bring in millions of dollars in investment and provide employment to more than 100 local people.
Mr Yu said they were willing to work with the Government to overcome any obstacle that might come in their way.
“We are happy that this land problem has been solved in such a short time,” he said.
Minister for Lands and Mineral Resources, Netani Sukanaivalu commended Government ministries and departments for facilitating the needs of a major investor from China in record time.
“A land lease for over 33 acres which would normally be issued over 24 months was today issued in just two months,” he said.
Mr Sukanaivalu said this record-breaking turn-around time was what this Government had always wanted to do.
“This is what Government had been saying all along - that Government ministries and departments must re-look at their systems and processes and ensure we reduce our turn-around time.”
He said Fiji, as a whole, would only be able to attract major investors if its facilitation processes were reviewed with the intention of reducing the overall cost of doing business, while at the same time improving the timeliness and effectiveness of service delivery.
“This means Fiji will have its second cement factory in a short while which could translate to reduced cost for cement.
“This could mean good news for the construction industry and for people wanting to build their homes,” Mr Sukanaivalu said.
He thanked all the Government agencies in particular the Ministry of Lands and Mineral Resources for co-coordinating and facilitating the preparation of the lease document.
Tengy Cement (Fiji) Company Limited is one of the first major investors which responded to the invitation from the Prime Minister to set up business in Fiji, following the Prime Minister’s visits to China in the past few months.
Acting Permanent Secretary for Lands and Mineral Resources, Filimone Kau, said the company now intends to start work on the new factory as early as next month.