TCL Group ‘unable to compete globally without CET’

Nov 13, 2009 News

…reiterates ability to supply in excess of current demand

By Gary Eleazar

Disregarding President Bharrat Jagdeo’s claim that cement should not be protected by the Common External Tariff (CET) General Manager of Arawak Cement Company Limited Jinda Maharaj on Wednesday told Guyanese media operatives at the entity’s Barbados Plant that while the Trinidad Cement Ltd. (TCL) Group of Companies could be considered large within the region it cannot compete with the global market without the tax protection.
According to the General Manager, to compound the situation, the company recently made two significantly large investments in the industry that have to be recovered.
Maharaj was speaking to reporters prior to a tour of the plant in the parish of St Lucy, where it was re-emphasized that the plant could adequately supply the demands of Guyana.
He pointed out that of the cement currently being produced by that plant, 12,000 tonnes is utilized in that country whilst 10,000 tonnes is shipped to Guyana monthly and another 8,000 tonnes is shipped to other markets.
The General Manager was even more adamant that the company’s production level is being stifled by the lack of demand, in that the plant has the capacity to produce some 412,000 tonnes but is being restricted, given that its two silos with a capacity of some 6,000 tonnes is almost always full.
He noted that one of the silos can be filled to capacity within a week and one of the group’s two vessels can be filled in 36 hours with the vessel reaching Guyana within another 36 hours.
According to Maharaj, should there be an increase in the demand then the company can adequately supply.
In light of the magnitude of the cement shipped to Guyana it makes it a critical market.
He added that the group’s production is some two million tonnes per annum and they would like to increase the fleet size, but there just isn’t the demand to warrant that at present.
The General Manager also pointed out that another inherent problem with the lack of demand is that the company is losing revenue simply by not producing to full capacity.
As it relates to the raw product, limestone, Maharaj said that the company has recently commissioned quarrying a new mine that could provide the company with adequate material to last another quarter century.
Speaking to the quality of cement, that President Bharrat Jagdeo lamented about, Maharaj first pointed to the fact that the Barbadian market is very demanding and critical and expects high quality.
He added that there are various internal mechanisms that are in place to ensure that less than acceptable cement does not hit the market, such as external forensic auditor, as it relates to the quality of the product as well as the ISO obligations.
Quality Assurance Manager Patrick Newton during a guided tour – commencing at the point where samples of the raw materials to prepare a batch of cement is initially analyzed to ensure that the most efficient blend could be ascertained – rated the product quality at nine out of a possible 10.
He noted too that there are regular checks of the finished product which is subjected to various rigorous tests down to a chemical level to ensure that the product is of a high quality.
Specialized compression equipment as well as x-rays are also used to determine the effectiveness of the concrete that is produced, using the cement to ensure that it is of the stipulated standard.
Some tests, according to Newton, are carried out every two hours.
The media was also provided with an exclusive look at the computer control mechanisms that are in place and constantly updated so that every aspect of production is monitored digitally to ensure that the relevant changes could be made at an instant.
Newton also drew reference to the many proactive measures in place such as regular calibrating of the integrity equipment used as well as the preventative maintenance that is carried out regularly to facilitate “100 per cent effectiveness”.
According to Newton, there is the redundancy of measures in place to ensure that the cement put on the market is of impeccable quality.
Speaking specifically to the lumpy cement that President Jagdeo had spoken of, Newton opined that this was impossible, considering the manner in which the cement is transported.
When asked whether there had been any such complaints in the past, Newton informed that in the past 18 months there have not been any.

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TCL Group ‘unable to compete globally without CET’

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