Carib Cement’s Production Capacity Expansion on Target

• Phase one of Caribbean Cement Company Limited’s (CCCL’s) US$40Mn expansion project, which will deliver an increase of up to 30% in production capacity, is progressing towards full completion next year. Managing Director, Jorge Martinez informed that the project has already created new local jobs and will be funded entirely by the company’s coffers.

• “When completed, this project will further reduce our carbon emissions and deliver increased output from 2,600 to 2,850 tonnes of clinker per day to meet the increased local demand for cement,” he said.

• He further noted that the company will also have the capacity to explore options for exporting to other countries within the Caribbean community and that these exports will benefit Jamaica’s economy through foreign currency income.

• First announced in 2022, the expansion and increased capacity project will strengthen the self-sufficiency of the national cement industry, reduce dependency on cement imports, and reinforce the company’s priority to serve the growth of the construction sector in Jamaica and the wider Caribbean.

• When the expansion is completed, Carib Cement’s existing cement production capacity will increase by approximately 300,000 metric tonnes.

• Caribbean Cement’s stock price has fallen by 4.9% since the start of the year, closing Wednesday’s trading session at $56.33. At this price, the stock trades at a P/E of 8.6x earnings, which is below the Main Market Energy, Industrials and Materials Sector Average of 16.0x earnings.

(Sources: Caribbean Cement and NCBCM Research)