TCL unveils new cement price structure

Published: Wednesday August 13, 2008

Trinidad Cement Limited (TCL) will introduce a new price structure from September 01, 2008. The minimal adjustment of 6.5 per cent (local market) and 12 per cent (export market) became necessary as a result of substantial increases in input costs, specifically related to raw materials, spares, fuel and freight.

Over the last year, the cost of clinker has increased by 22 per cent reflecting increased energy prices of approximately 50 per cent, spares such as steel balls and chains by 37 per cent and 20 per cent respectively, and freight on the importation of major raw materials by on average 32 per cent. These current global construction price pressures coupled with inflationary trends have placed additional challenges on the local construction industry.

Absorbing Costs

TCL, for some time now, has been absorbing these costs in order to minimise the impact to consumers, however, in spite of improved operational efficiencies and a price adjustment of 8.5 per cent in February, the company is currently unable to further absorb these escalating prices.

TCL remains committed to producing quality products and providing superior customer service at the lowest possible cost. As part of this commitment, an extensive programme of expansion and modernisation has been undertaken across the TCL Group, which spans from the Caribbean Cement Company Limited in Jamaica to the company's new cement terminal, TCL Guyana Inc in Guyana. This programme will lead to improved operational efficiencies. The first phase was the construction of a new cement mill at TCL's Claxton Bay facility, which was completed in late 2005. This has resulted in a continued supply of cement to the local market and an improved supply to TCL's Caricom market.

Massive expansion is currently in progress at Caribbean Cement in Jamaica where that plant's capacity will move from approximately 700,000 to 1,200,000 million tonnes of clinker and from approximately 1,000,000 to 2,000,000 tonnes of cement per annum. The next phase of the Group's E&M project will see the upgrade of the kiln at TCL, Claxton Bay, the outcome of which will be an increase in clinker capacity from approximately 700,000 to 1,100.000 tonnes/year by 2011. The expansion and modernisation of TCL's facilities across all its plants will enable the company to maintain its position of the region's premier producer and supplier of quality cement at affordable prices.


Source: Trinidad Express Newspapers
http://www.trinidadexpress.com/index.pl/article_business_mag?id=161363094