SUNBIZ

Domestic Cement Supply Stable

Expect domestic cement sales to remain steady over the next half of the year. But this depends on the restoration of full production capacity at the two cement producing companies,
05 Jul 2017 10:47
Domestic Cement Supply Stable
Serenity 1 at the Suva harbour, carrying Tengy Cement Limited clinker supply. Photo: Ronald Kumar.

Expect domestic cement sales to remain steady over the next half of the year. But this depends on the restoration of full production capacity at the two cement producing companies, Pacific Cement Limited and Tengy Cement Limited based in Lami.

The latest Reserve Bank of Fiji Economic Review noted that with the consistent ongoing construction activity, cement sales had registered solid growth.

A drop in cement production will impact construction and investment activity.

To cushion this fall, Pacific Cement Limited has contingency plans in place.

They have suspended all exports to the region for the past two months and will continue to do so until later in the year. The company will focus on meeting local demand.

Yesterday while announcing that they were back in operation, the company was only operating at a lower capacity of 60 per cent. This will be the case until the end of the month.

The installation of a new Trunnion Gear Assembly next month will see the PCL Cement Plant shut down from August 15 to August 30.

PCL Director Nouzab Fareed said the factory should be recommissioned on September 1 at a lower pace and would reach 100 per cent maximum milling and production capacity of 25 tonnes per hour within two weeks.”

He said PCL is working to secure a supplier of quality and affordable cement from overseas.

“Currently we are in the process of negotiation with our suppliers.

“We are experiencing difficulties in finding a supplier who can meet the quality standards that is required in Fiji at the right price which is causing delay.”

The company has assured that they have sufficient clinker for 4 months supply at full production capacity.

“We are also mindful and respect of our commitment to supply clinker to our competitor, Tengy Cement Limited, should they require – to ensure continuity in the factory operations and supply of cement to the local market.”

Meanwhile, Tengy Cement general manager, Hongyang Li said they had stopped cement production last Saturday after running out of clinker.

The boat carrying their clinker supply, Serenity 1, arrived at the Suva harbour on Friday. They have yet to off-load their supply.

Fiji Ports Corporation Limited chief executive officer, Vajira Piyasena confirmed that a Pacific Cement vessel was still off-loading their clinker supply. 

Serenity 1 would have to wait until the off-loading was complete.

Last month, Government had stepped in to resolve the shortage of cement in the busy local construction market. A zero duty rate was imposed on imported cement.

Feedback: selita.bolanavanua@fijisun.com.fj



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