KINGSTON, Jamaica – Jamaica’s Government has approved additional cement imports to address a shortage affecting the local construction sector, with Industry, Investment and Commerce Minister Senator Aubyn Hill saying the move is intended to ensure adequate supply as demand increases.
Caribbean Cement Company Limited (CCCL), Jamaica’s primary cement manufacturer, had reported production challenges linked to heavy rainfall affecting raw materials and operational adjustments associated with kiln expansion works.
The demand for cement also increased as persons began rebuilding following the passage of Hurricane Melissa.
Addressing a post-Cabinet press briefing at Jamaica House, Hill said the Government gave importers the opportunity to supply the local market with additional cement.
“We had to look at compounding average, annual growth rate and see how we project what cement demand will be,” he said.
The minister said supply conditions have improved as Caribbean Cement has increased imports and new importers have begun establishing arrangements to meet demand.
“We know that Caribbean Cement Company has imported a lot more [and] the new importers are out there setting up their arrangements. So, the shortage of cement has become much less of a subject. We know that the supply is here to meet that demand,” Hill said.
He said the Government’s decision was based on projections of cement demand and the need to support continued activity in the construction sector.
Hill also noted that expected demand associated with construction projects under the National Reconstruction and Resilience Authority (NARRA) is not included in the current import arrangements.
“When NARRA comes in there is going to be a whole different calculation because big projects are going to need special amounts of cement, and after the projects [are completed] that demand will not be there. So, we have to put special arrangements in place… but it is not in this allocation of imports,” he said.
The minister said separate arrangements would be required to address the needs of large-scale reconstruction projects once they begin.
