Firms offered stake in cement plant
Stabroek News
April 23, 2004
Trinidad Cement Limited (TCL) is offering four local companies a 40% stake in its proposed US$4M cement terminal.
Three of the firms, Anral Shipping, Toolsie Persaud Limited and R&R International are the suppliers of TCL cement in Guyana, while the fourth is retailer/wholesaler, Gafson's Industries.
Kelvin Mohabir, General Manager, International Business and Marketing of TCL, says initial discussions were initiated but there are no conclusions as yet.
TCL sells US$64M in cement to Guyana annually and sales are expected to increase with outlying markets such as Northern Brazil being tapped.
The project will be financed by US$2M in equity while debt financing will raise the other US$2M. Of the equity, TCL will inject US$1.2M and the Guyanese companies, if they agree to an equity participation, will invest US$200,000 each.
The project is expected to create 18 direct jobs and 100 indirect jobs in the construction phase. It will conserve on foreign exchange outflows and will allow for a reliable supply of cement, which has the potential to stabilise prices.
Once exports to Brazil are achieved, the project can earn foreign exchange and TCL sees as potential downstream investments a block manufacturing plant and ready-mix concrete.
TCL expects mechanical completion of the project by October with commissioning in November.