NEWLY formed Jamaican firm AG Chem Plant Limited has acquired J Wray & Nephew’s Agriculture Chemical Plant division for US$8 million.

The purchase, according to Joe Pires Jr, managing director of Caribbean Chemicals and Agencies Limited (CCA), the parent company of AG Chem Plant, is a strategic step designed to allow the Jamaican subsidiary to supply the rest of the Caribbean with products that are now imported from China and other countries.

“We expect our Jamaican operation to expand its exports in the region by 50 per cent in the next two to three years and become a net foreign exchange earner in the same time period,” a company news release quoted Pires Jr. “AG Chem is operated by Jamaicans, and with General Manager Graham Dunkley continuing to lead the company, we expect to be a good corporate citizen in Jamaica and the region and continue to introduce new technology to reduce our farmers’ costs. We are extremely excited for the potential of this business and foresee a successful and profitable future ahead.”

Caribbean Chemicals and Agencies Limited is the largest agricultural input supplier in the English-speaking Caribbean and was founded in 1967 by Joe Pires Snr (deceased). The company is based in Trinidad with offices in Guyana and Suriname and describes itself as a pioneer in the agriculture business for over 47 years to all the Caribbean islands.

CCA represents some of the largest brands in the agricultural industry like BASF, Seminis, Jacto, Omex and Miller, among others.

The company news release explained that AG Chem Plant Limited was formed to acquire the assets of J Wray and Nephew’s agricultural chemicals division, which include a formulating plant, land, buildings, all trade names and chemical registrations and all registrations in other Caribbean islands which account for 50 per cent of sales for a number of years.

The directors of AG Chem Plant Limited are Joe Pires Jr (chairman) and Jamaicans Simon duQuesnay, Paul Lalor, Martine Fontaine, Ollie McIntosh, Raymond Miles Jr, and Bruce Levy.

Chairman of CCA Mike Toney stated that the acquisition solidifies CCA’s position as the largest supplier to the Caribbean of inputs into farming.

“Our investment in this deal includes the purchase price of US$8.2 million, but when you consider taxes and duties, etc, it is just over US$9 million that we would pay on completion of this purchase,” stated Toney.

“We are confident that Jamaica and regional agriculture will improve as Caricom governments recognise the need to control their growing food import bill and save foreign exchange,” Toney said, adding that the acquisition now allows CCA to enter new markets.