Summary of Proposed Investment
Project Number
22268
Company Name
Trinidad Cement Limited
Date SPI Disclosed
Mar 25, 2005
Country
Trinidad and Tobago
Industry
Manufacturing
Projected Board Date
Apr 26, 2005
Status
Completed
Sector
Cement
Date Revised SPI Disclosed
May 19, 2005
Department
Gbl Ind, Manufact, Agribus & Services
Environmental Category
B - Limited
Previous Events
Approved : Jun 20, 2005
Signed : Jun 28, 2005
Invested : Nov 2, 2005
Project Description
The Trinidad Cement Limited Group (the Sponsors, or the Group,), which has cement operations in Trinidad, Jamaica and Barbados, is the leading producer and dominant supplier of cement in the Caricom, the economic grouping of English-speaking Caribbean island nations plus Belize, Guyana and Suriname which together have a population of approximately six million. Its three main operating subsidiaries are Trinidad Cement Limited (TCL or the company), Caribbean Cement Company Limited (Carib Cement) in Jamaica and Arawak Cement Company Limited in Barbados. With combined cement production capacity of 2.3 million tons per year, the three plants produce for their domestic markets and also export to the Caricom markets, where the Group commands an 85% market share.
Purpose of the project is a $133 million capital expenditure program in Carib Cement between 2005-2009 includes:
- expansion of clinker manufacturing capacity by installing a new modern dry process kiln and upgrading the existing dry process kiln;
- upgrading/expanding the capacity of the existing cement mills;
- quarry mapping and upgrades to mobile fleet;
- expansion of packing capacity; and
- general improvements.
The project will help Carib Cement improve the cost base of its cement plant and become a stronger regional player. Carib Cement will be better able to compete with both importers and competitors in the region. At present, the markets of Trinidad, Jamaica and Barbados are protected by tariffs on cement imported from outside the Caricom region and have high domestic prices (above $100/ton), reflecting a lack of competition in the local markets and high production costs. In anticipation of tariff reductions and increased competition from imports, the TCL Group, including Carib Cement is embarking on a strategy that focuses on improving cost competitiveness and upgrading capacity.
Purpose of the project is a $133 million capital expenditure program in Carib Cement between 2005-2009 includes:
- expansion of clinker manufacturing capacity by installing a new modern dry process kiln and upgrading the existing dry process kiln;
- upgrading/expanding the capacity of the existing cement mills;
- quarry mapping and upgrades to mobile fleet;
- expansion of packing capacity; and
- general improvements.
The project will help Carib Cement improve the cost base of its cement plant and become a stronger regional player. Carib Cement will be better able to compete with both importers and competitors in the region. At present, the markets of Trinidad, Jamaica and Barbados are protected by tariffs on cement imported from outside the Caricom region and have high domestic prices (above $100/ton), reflecting a lack of competition in the local markets and high production costs. In anticipation of tariff reductions and increased competition from imports, the TCL Group, including Carib Cement is embarking on a strategy that focuses on improving cost competitiveness and upgrading capacity.
Sponsor / Cost / Location
Development Impact
Related ESRS/ERS
Contacts
For Inquiries About the Project, Contact
Mesut Uyumazturk, Senior Investment Officer, IFC
Telephone: (202)473-2578
Fax: (202)974-4810
Email:muyumazturk@ifc.org
Telephone: (202)473-2578
Fax: (202)974-4810
Email:muyumazturk@ifc.org