Carib Cement Company Commissions Major Project to Increase Production

  • Caribbean Cement Company (CCC), on Thursday (June 26), officially commissioned its $6.7Bn (US$42Mn) Debottleneck Project. The project is designed to enhance the production capacity and operational efficiency at the company’s Rockfort facility, which is pivotal in meeting the growing local demand for cement, and to support the island’s infrastructural development goals.
  • Speaking at the commissioning ceremony held at the facility’s Rockfort location, Prime Minister Dr. the Most Hon. Andrew Holness emphasised that this significant investment will advance Jamaica’s goals of industrialisation, self-sufficiency, and long-term economic growth.
  • He noted that as local demand for cement continues to exceed supply, the country has increasingly been forced to rely on imports, leading to higher costs, delays, and greater dependence on external supply chains, according to the Prime Minister. He added that these vulnerabilities have been exacerbated by the global disruption caused by the pandemic-related logistics breakdown, as well as inflationary pressures and geopolitical tensions.
  • This project is expected to stabilise Carib Cement’s kiln operations, maximise clinker production, and help meet Jamaica’s cement needs through domestic output. This is expected to bolster production capacity while contributing to the long-term growth of Jamaica’s construction and manufacturing sectors.
  • Additionally, it positions the company to become a net exporter of cement to the wider Caribbean region. Currently, CCC exports primarily to CARICOM member states and has recently begun shipments to the Turks and Caicos. However, exports contribute less than 1% of total revenues, indicating significant untapped potential. This expansion presents an opportunity for CCC to grow its revenue base in regional markets, ultimately driving higher group revenues and improved profitability.
  • CCC’s stock price has decreased by 0.8% year-to-date, closing at $83.33 as of Wednesday. At this price, the stock is trading at a price-to-earnings (P/E) ratio of 11.9x, which is lower than the Main Market Energy, Industrials and Materials Sector average of 18.6x.

(Sources: JIS & NCBCM Research)