Jul 2014 Financial News

TCL prices increase today

Jul 01, 2014

TRINIDAD Cement Limited (TCL) yesterday announced that domestic cement prices will increase from today. However the company gave the assurance that the adjustment in cement prices will not hamper the supply of cement on the domestic market.

In a statement, TCL said its last price adjustment was 18 months ago on January 2, 2013. The company said at that time it committed to hold prices for at least one year. “TCL Premium Plus, which accounts for 95 percent of local market share, will be adjusted by nine percent, which is equal to a five cent increase per pound from $0.53 to $0.58 vat inclusive. Ordinary Portland Cement (OPC), which is used by approximately five percent of the market, will move by 15 percent.

TC: explained these price movements have resulted from continual increases in major cost components over the past 18 months. However the company said these changes were especially brought about in the last six months, “when there has been a steady rise in the price of equipment spares, raw materials, freight rates and supplier services.”

Stating that the entire local construction industry has been faced with increased operational costs, TCL said, “This is supported by the fact that most companies have increased prices within the last six months with prices moving by as much as 67 percent and 50 percent as in the case of sharp sand and gravel.”

The company also noted that other building supplies such as clay bricks, ready-mix concrete and concrete blocks have also increased by 21, 20 and 15 percent respectively. Noting that cement is a major element of local and regional economic growth, TCL said it “has kept the adjustments to a minimum.”

The company said its prices still remain close to the lower end of the tier when compared in a global context. “Independent studies by Quantity Surveyors have confirmed that the total cost of cement in a standard dwelling house is just five percent of overall construction material cost,” TCL stated. The company said as customary, all contractors registered with the Trinidad and Tobago Contractors’ Association (TTCA) will be offered “a three-month waiver of the new price for fixed price contracts with their clients.”

Sayng it continuously implements measures to improve its efficiency and reduce costs and increase revenue, TCL said the most recent of these include the outsourcing of some non-core activities at both the Packing Plant and the Mayo Quarry; installation of an expert operator system on its kilns and mills and likewise, the company has automated parts of its operations. TCL said it has also begun exporting oil well cement (Class G) to South America in efforts to increase revenue, diversify its markets and differentiate its products.

TCL reiterated that it remains committed to providing superior quality products at a very competitive price and to the delivery of exceptional service and technical expertise.


Source:
Newsday
Tuesday July 1, 2014

http://www.newsday.co.tt/business/0,197005.html