Dominican producers caution on rising costs

Dominican producers caution on rising costs
Published: 13 October 2011

Dominican cement producers are struggling with rising input costs which have more than doubled of late, according to industry association Adocem, while demand is experiencing a downward trend.

Dominican cement producers association, Adocem has said input costs in the cement production process such as energy, fuels and local transort, have risen and represent 60% of the total cost to produce per bag of cement.

Meanwhile cement demand has fallen by around 24% compared with 2006, when 3.7Mt were sold. Industry experts put demand at slightly more than 2.8Mt for full-year 2011.  Last year, domestic sales reached 3Mt.

ADOCEM president Osvaldo Oller said the country consumed around 1.8Mt of cement to August.

“Despite these conditions this hasn’t meant changes neither in the numerous investments which this productive process requires, in the accumulation of costs of the different consumables, nor a reduction of the funds that our industry invests within the national industrial sector.”

According to Adocem the cement makers have been exploring all possible measures to cut costs and remain competitive regarding the perspective of production costs continuing to increase.