Nov 2009 Financial News

Trinidad, Colombian cement companies to battle for market share

Nov 11, 2009

ANTIGUA AND Barbuda officials are anticipating lower prices for cement after the Colombian cement giant, Cementos Argos, said it was prepared to battle the regional cement manufacturer, Trinidad Cement Limited (TCL), for control of the market here.

Both companies have responded to a government announcement that Antigua had secured permission from the Council for Trade and Economic Development (COTED) to source cement from other external sources, thereby opening the way for competition.

At a recent meeting in Barbados, COTED, the second highest decision-making body in CARICOM, granted a one-year suspension on the application of the Common External Tariff (CET) on cement, clearing the way for Antigua and Barbuda to import 60,000 tonnes of cement from October 9 to October 28, 2010.

This is subject, however, to the confirmation by Barbados, Jamaica and Trinidad and Tobago of their inability to supply the commodity.

Argos' resolve to fight

Antigua's trade, ambass-ador Clarence Henry, said that TCL has already entered the Antigua and Barbuda market, but that a representative from Argos visited his office recently and expressed his company's determination to fight the Trinidad-based company.

"We must say that the TCL company has re-entered the Antigua market and they now have a new agent, the Antigua Masonry Products, and the prices which are being offered by TCL are extremely good," Henry said.

"On the other hand, Argos, a company which has been in the cement-producing business for a number of years, with opera-tions out of Colombia, recently purchased the ter-minal, and through their agent, they have vowed to fight to maintain the Antigua and Barbuda market share."

Benefits for consumers

Henry said Argos has indicated that it would implement the necessary measures to make its product continue to be competitive alongside the TCL cement and he anticipated that consumers would benefit greatly from the increased competition.

"We are, in essence, anticipating the lowering of the price of cement, which clearly will be a good thing for the Antigua and Barbuda economy and for construction in general," Henry said.

"Currently, cement is retailed on the local market between EC$23 to EC$25 (US$8.77 to US$9.54) and, in some cases, EC$20 (US$7.63), and we are urging consumers to shop around and wherever you can find a product that is quality and is cheaper in price, clearly consumers ought to purchase. It is up to them to determine what they purchase."


Source:
Jamaica Gleaner
Wednesday | November 11, 2009

http://www.jamaica-gleaner.com/gleaner/20091111/business/business7.html