The two big Jamaican cement importers yesterday said they will, between them, shed 240 jobs and laid the blame squarely on the government’s decision this week to raise the tariff on imported cement to 40.83 per cent.

At the same time, the firms, major hardware suppliers, signalled their intent to expand their operations overseas, ostensibly in more business-friendly countries.

“We are looking to invest overseas,” said Canute Salmon, vice president for marketing at ArcSystems, a company whose principal is Jamaica Labour Party (JLP) senator, Norman Horn.

“We already have operations in Panama and we are looking to expand there,” said Salmon. “. It is a pity that we cannot expand in Jamaica.”

Jody Myrie, a vice president of the family-owned and managed Mainland International even suggested closing the business in Jamaica.

“If we had a company to buy us out right now my personal feeling is that I would be willing to do it,” he said.

The new duty on cement – after a 25.83 per cent increase implemented by the government on the recommendation of the Anti-Dumping and Subsidies Committee – is still nearly 10 percentage points below the 50 per cent tariff the local manufacturer said was necessary for it to undertake a planned US$100 million investment to expand and modernise its plant.

However, senior officials of Caribbean Cement Company (CCL) were unavailable for comment yesterday on whether the tariff that was approved was sufficient for the company to move ahead with the investment.

CCL, a subsidiary of Trinidad Cement Ltd, has long complained that dumped cement was being imported into Jamaica and appealed to the government for protection for up to four years, so as to prepare for reciprocal free trade under the proposed Free Trade Areas of the Americas and a wider opening of the Jamaican market under the rules of the World Trade Organisation (WTO).

But importers like ArcSystems and Mainland have, despite past rulings by the Anti-Dumping and Subsidies Commission, have rejected the dumping claims, argued that CCL is incapable of satisfying local demand and suggested any hike in the 15 per cent tariff that existed up until Monday should have been based on Carib Cement meeting market requirements.

The government, however, rejected the arguments by the importers and their backers and ArcSystems and Mainland insisted yesterday that they would have no option but to cut jobs because of the expected down-turn in business. Each would slash 120 jobs.

“We have chosen to lay off 120 of our staff,” said Arc’s Salmon.

This is about half the company’s staff.

Cement sales represent about a quarter of Arc’s revenue, Salmon said.

For Mainland, cement accounts for 40 per cent of turnover. Myrie hopes to recoup some of the expected downward shift in revenues by “investing heavily in steel, lumber and plywood importation”.

But nonetheless Myrie said that his firm will have to slash 120 of its 520 employees, adding to those who had to go in October.

Myrie also said that Mainland will give up its rental of a 15-acre warehouse owned by the government’s Factories Corporation in Clarendon. The facility is used by Mainland to store cement.

“The amount of revenues Government would lose from rent and jobs lost would be unbelievable,” Myrie said.

Added ArcSystems principal, Norman Horne of the tariff decision: “This is the kind of policy decision that sends the wrong message to investors and as a country we should be careful of the precedents we set.”