Sep 2016 Financial News

Cement company spends US$5.5 million to double output

Sep 26, 2016

After spending US$5.5 million to increase its capacity, Caribbean Cement Company Limited has promised that the tightness in the supply of cement will be rectified within the next 72 hours.

According to the company, it has taken note of recent reports of a minor glitch in the supply chain of cement in the local market, but this has been addressed and normal delivery is being restored.

"In recent months, the company has embarked on a J$700 million (or US$5.5 million) overhaul of the kiln and one of our cement mills at our Rockfort plant, which are in desperate need of upgrade as they were operating below their optimal capacity.

"In anticipation of this work, our inventories were increased to satisfy any downturn in supply. Despite those actions, during that period, our supply to the market was at 90 per cent of peak demand, leading to a slight rationing of supply," the company said in a release yesterday.

"During the next 24 hours, the kiln and mill will return to normal operation, and our capacity to produce will be at double the island's peak demand for cement," added the company.

According to Caribbean Cement, regular production has been restored and it will have excess capacity to meet the needs of all its customers by Tuesday.

"We apologise for this unavoidable minor glitch, and appreciate the understanding of our customers with which we have maintained close communication.

"This necessary upgrade has put the company in a position to meet and surpass the increased demand which is being forecast, based on the expected spike in construction projects across Jamaica in the upcoming months," said Caribbean Cement.

Over the last week, callers to our newsroom had complained that they were unable to get their regular supply of cement from dealers in several sections of island.

Source:
Jamaica Gleaner
Sunday September 25, 2016

http://jamaica-gleaner.com/article/lead-stories/20160925/cement-company-spends-us55-million-double-output