Trinidad Cement Ltd (TCL) has increased its prices as of 1 July 2014 to help counter increases in production costs.
The company stated: “TCL Premium Plus, which accounts for 95 per cent of local market share, will be adjusted by nine per cent, which is equal to a five cent increase per pound from US$.53 to $.58 VAT inclusive. Ordinary Portland Cement (OPC), which is used by approximately five per cent of the market, will move by 15 per cent.”
TCL added: “These price movements have resulted from continual increases in major cost components over the past 18 months, but more so, over the past six months, when there has been a steady rise in the price of equipment spares, raw materials, freight rates and supplier services.”
It said the entire local construction industry was facing increased costing in building materials. The company’s last price adjustment was 18 months ago on 2 January 2013 at which time it committed to hold prices for at least 12 months. The company stated: “In recognition of the fact that cement is a major element of local and regional economic growth, TCL has kept the adjustments to a minimum and is pleased to state, that its prices still remain close to the lower end of the tier when compared in a global context. Independent studies by Quantity Surveyors have confirmed the total cost of cement in a standard dwelling house is just five per cent of overall construction material cost.”
The company stressed that as is customary, all contractors registered with the Trinidad and Tobago Contractors’ Association (TTCA) will be offered a three-month waiver of the new price for fixed price contracts with their clients.
TCL also stressed that it continuously implements measures to improve its efficiency and reduce costs and increase revenue. The most recent of these include the outsourcing of some non-core activities at both its packing plant and the Mayo quarry, installation of an expert operator system on its kilns and mills and likewise, the company has automated parts of its operations.
The company has also begun exporting oil well cement (Class G) to South America in efforts to increase revenue, diversify its markets and differentiate its products.