Jamaica to make first clinker shipment to Venezuela

BY SHAMILLE SCOTT Business Reporter

Friday, December 20, 2013    

Print this page Email A Friend!

CARIBBEAN Cement Company will send its first clinker shipment to Venezuela tomorrow, as part of an agreement to supply 100,000 tonnes of the product over five months to the South American country.

Clinker, the intermediate product made in cement manufacturing, will be supplied to Pertigalete Venezuela. The US$8.5-million deal was facilitated under the compensation mechanism of the PetroCaribe Agreement, whereby the Government of Jamaica can service a loan of over US$2.4 billion from the South American country with exports.

After three years of negotiations between the cement company and the Governments of Jamaica and Venezuela, the firm will export 20,000 tonnes of clinker per month between December and April next year.

"This arrangement will afford the opportunity to pre- utilise our clinker manufacturing plant, improve our financial performance and bolster our sustainability as an iconic Jamaican institution," said Anthony Haynes, general manager of Carib Cement.

He said the company plans to continue negotiations to supply the product.

"We hope that this shipment represents the first of a sustainable agreement where we can supply products to Venezuela," he said in his remarks at the press conference to commemorate the first shipment at the Jamaica Gypsum and Quarries Pier yesterday.

Jamaica's total debt to Venezuela is about US$2.5 billion while the annual debt payment currently is about US$100 million per annum. So US$8.5 million is about eight per cent for the annual payment, said Wesley Hughes, CEO of the PetroCaribe Development Fund.

"We expect that this is just the first of many; if we have $20 million per annum from one company we can see that this is significant," he said.

The country has the potential to export up to US$100 million in products to Venezuela.

Carib Cement posted a net profit of $168.9 million for the third quarter ending September 30, 2013, compared to a $245-million loss over the same three months last year. The positive result was boosted by increased cement sales volumes in both local and export markets — up 18 per cent and 60 per cent respectively over year earlier levels — contributing to a 52 per cent jump in total revenue to $3.2 billion.





1. We welcome reader comments on the top stories of the day. Some comments may be republished on the website or in the newspaper – email addresses will not be published.

2. Please understand that comments are moderated and it is not always possible to publish all that have been submitted. We will, however, try to publish comments that are representative of all received.

3. We ask that comments are civil and free of libellous or hateful material. Also please stick to the topic under discussion.

4. Please do not write in block capitals since this makes your comment hard to read.

5. Please don't use the comments to advertise. However, our advertising department can be more than accommodating if emailed:

6. If readers wish to report offensive comments, suggest a correction or share a story then please email:

7. Lastly, read our Terms and Conditions and Privacy Policy

comments powered by Disqus


Will you close your bank account because of Government's tax on withdrawals?

View Results »


Today's Cartoon

Click image to view full size editorial cartoon