With plans to enter at least three new markets across the region in the coming months, thermoplastics manufacturer Omni Industries Limited is looking to extract significant revenues from these higher value economies.

“Guyana, Barbados, and Trinidad present robust opportunities for expansion due to their growing economies and demand for construction and industrial packaging. We’ve already begun dialogue with Barbados and are in the process of forming [similar] relationships with Guyana and Trinidad,” Managing Director Patrick Kumst said in response to queries from the
Jamaica Observer on Monday as he spoke to the company’s recently announced expansion plans for the three Caribbean countries.

With the oil-rich Guyana expected to remain one of the world’s fastest-growing economies, that country is expected to maintain its double-digit growth rate this year, growing to almost 34 per cent based on early projections. Barbados and Trinidad, on the other hand, though witnessing lesser growth are also expected to deliver improved out-turns of around 3.9 per cent and 2.4 per cent, respectively, in 2024, contingent on additional expansion in tourist arrivals, new energy projects coming on stream and continued investment in both economies.

Already in discussions with a producer in Barbados to supply beverage crates, the local manufacturer is confident that it can build-out a strong supply network across the region, in both new and existing markets. This, as the company now moves to expand its product range to include new items such as plastic chairs, bread trays and 20-litre motor oil buckets.

Speaking at a company held investor briefing last week, Kumst said the company’s intent is to double down in these markets with particularly its niche products.

“A lot of trucks transporting products from bakeries all use a particular tray for transportation purposes. That product is not being made in Jamaica. Everybody has to rely on importation, so we see a market niche that we could get into. Meanwhile, we also see opportunity in the bulk motor oil industry. People are importing motor oil in bulk and repackaging it, and those packing containers are currently being imported. We also intend to capitalise on this,” he indicated during the recent briefing.

“The addition of these products will help to diversify our portfolio and to meet the evolving needs of our customers,” he added.

Omni in its current business now manufactures and distributes PVC pipes, hardware and houseware products also offering industrial packaging.

With the company now having approximately 15 per cent of its total sales coming from exports, the managing director said the anticipation is to have this increase to at least 20 per cent over the next 12 to 24 months. If achieved, this would grow export earnings to about $400 million, approximately $100 million more than it currently generates.

Already exporting to other Caricom countries such as St Lucia and St Vincent, the local manufacturer also recently broke into the Central American market after it began to export selected products to countries such as Panama and Costa Rica.

The company last year registered revenues of over $2 billion, but wants to move the needle much more on this as it enters new markets and take advantage of its monopoly position as the sole manufacturer for crates and buckets in the food and paint industries and also from it activities as a lead supplier for fire hydrants locally.

On the heels of its initial public offering (IPO) at $1 per share last Friday, the Twickenham Park, St Catherine-based company is seeking to raise $500 million to fund its growth objectives.

Bullish on its plans for growth, the company’s management is now focused on what it refers to as the “second growth phase” for the 50-year-old operation.

The management noted that while there was no immediate plans for acquisitions, future opportunities will be aligned with the company’s overall growth strategy.

“We’re always looking for opportunities and we’ll never turn down a good investment opportunity,” Kumst said.