Jul 2012 Financial News

TCL to cut price of bag of cement by $13

Jul 31, 2012

Trinidad Cement Limited (TCL) yesterday announced that it was cutting the price of its standard 42.5kg bag by $13. In a statement yesterday, the Claxton Bay cement producer said that it was forced to place a $13 per bag surcharge on the price of cement two weeks into its recent industrial relations impasse that began on February 27 and ended on May 28. TCL said: “The additional charge was driven by the higher cost of satisfying the local cement demand due to extenuating circumstances created by the strike—among these, the importation of cement and clinker (intermediate product in the manufacture of cement) from other TCL Group operations in Barbados and Jamaica, administrative and other logistical challenges.” The company said that given TCL’s removal of the surcharge, retail prices in the local market were expected to revert to pre-strike prices, which were in the range of $49.50 to $54.50 per 42.5kg bag of TCL Premium Plus. The removal of a per surcharge, which the company that it was forced to place on the price of cement two weeks into its recent industrial relations impasse that began on February 27 and ended on May 28.

In making the announcement, general manager, Satnarine Bachew, said that the company’s production was back up to its full capacity, removing the dependency on imported product and clinker. “There have been significant operational and financial setbacks from which we are still recovering, however, we indicated that our ex-factory prices would revert by end July and therefore, we are duty bound to honour our word within the specified timeframe,” Bachew said. He went on to say, however, that the company will be reviewing its pricing regime in the 4th quarter of 2012. TCL said that it thanked all its loyal customers, shareholders, investors, employees and other stakeholders for their understanding and support during a very challenging period in the company’s history and reiterated its ongoing commitment to the economic development of Trinidad and Tobago and by extension, the region.


Source:
Trinidad Guardian
Tuesday July 31, 2012

http://www.guardian.co.tt/business/2012-07-31/tcl-cut-price-bag-cement-13