In line with SEDCO's policy of promoting resource-based industries and creating spin-off effects on the sectors, Padu Wangsa Sdn Bhd was incorporated in 1994 to manufacture clinker. Raw materials will be sourced from Balambangan Island in northern Sabah while the plant will be sited adjacent to the existing cement plant in Sepangar Bay.

Expected to start operation in early 2004, the plant will have an annual capacity of 975,000 metric tons of clinker to cater for local and overseas markets.