Caribbean Cement Company Limited Upgrades Capacity

• Caribbean Cement Company Limited (CCC) has advised that it has decided to embark on an expansion project during the second half of 2022 to achieve a 30.0% increase in its production capacity. Currently, CCC produces and supplies over 1.0Mn Metric Tonnes of cement to the local market annually.
• This capacity upgrade also involves the implementation of new technologies, which will introduce novel grinding additives to the manufacturing process to reduce the clinker content in the cement produced by CCC. In addition, this upgrade is intended to minimize the company’s carbon footprint in Jamaica by optimizing the heat consumption involved in the cement production process.
• The total investment for this capacity upgrade is estimated at US$30.00Mn. This project is consistent with the Company’s overall growth plan and is intended to strengthen its ability to respond to local and export demand over the medium term.
• The company has continued to produce strong results in spite of the pandemic, with net profits doubling during the first half of its 2021 financial year, on the back of a 32.0% increase in revenues. The company attributed the higher revenues to strong domestic demand, and its capacity to supply the local market. As CCC increases its production capacity we anticipate that it will be able to continue to meet the growing domestic demand in the construction industry and could finally begin to sustainably execute on its plans to export cement to the region.  We anticipate that when it achieves its new production capacity this should support top and bottom-line growth and bringing greater value to the shareholders.
• CCC’s price has appreciated by 50.4% year to date to $94.43 as at August 9^th. At this price the stock trades at a P/E of 15.2x which is below the main market manufacturing sector average of 17.7x.

Source: (JSE & NCBCM Research)