Expanded cement quota too small for Melissa rebuilding, warns Buying House

Buying House Company Limited says the Government’s decision to expand its cement import quota falls short of what will be needed to maintain stable supply through the second half of the year as Jamaica’s construction sector pushes deeper into Hurricane Melissa recovery works.

Mark Hart, a director of the company, said on Friday that while the near-term priority was managing supply through to July, a more substantial allocation would be required thereafter. “We are only looking to close the first six months up to July. It won’t be that much, but the next period will require a larger quota to keep the market stable,” he said.

Hart is chairman of Cargo Handlers Ltd, which owns a 30 per cent stake in Buying House. The company imports cement from the Dominican Republic and acts as a supplier to counter Caribbean Cement Company, the island’s sole manufacturer.

The warning came a day after the Ministry of Industry, Investment and Commerce, led by Senator Aubyn Hill, announced emergency measures to address a cement shortage triggered by heavy rainfall that disrupted production at Caribbean Cement’s Rockfort plant in Kingston. The ministry approved an additional import quota for Buying House to plug the immediate gap, primarily in Western Jamaica. Caribbean Cement has also diverted a vessel previously bound for the Bahamas, now due to arrive Saturday, April 25, with a further 28,400 tonnes scheduled for early May.

But Buying House asserts that the problem runs deeper than the weather disruption. The company’s annual import quota was raised to 150,000 tonnes from 120,000 tonnes in 2024, yet Hart says even the higher allocation will be exhausted well before December as demand from housing, roadworks, hospitals, and hotel projects converges with Melissa reconstruction. “At 120,000 tonnes, it is not enough to supply all the growth,” he said.

Minister Hill framed the Government’s intervention in terms of the broader rebuilding effort. “We recognise the importance of maintaining stability in cement supply, particularly at a time when construction remains a key reliever of the pain of the devastation brought by Hurricane Melissa,” he said. “The ministry has acted to ensure that any short-term disruptions are mitigated so that builders, developers, and investors can continue their work with confidence.”

The disruption at Caribbean Cement has already rippled through the supply chain. Jamaica Pre-Mix Concrete Ltd, a large supplier to the trade, has warned that its ability to deliver concrete mixes has been compromised, according to statements seen by the Financial Gleaner.

“We are suffering from a chronic shortage of cement,” stated Jamaica Pre-Mix.

Hart argues that Buying House plays a necessary stabilising role in the market – the company entered 15 years ago when the dominant supplier faced quality issues – and that without a meaningful quota increase ahead of the second half, projects risk stalling and contractor margins could tighten further.

Caribbean Cement, whose shares trade on the Jamaica Stock Exchange, is majority owned by Cemex, the Mexican building materials group. The company commissioned an enlarged plant last year after investing US$42 million over three years to lift annual cement production capacity from 1.0 million tonnes to beyond 1.3 million tonnes. In releasing its year-end results, management said the expansion had strengthened the company’s ability to meet domestic demand even in the face of the adverse impact of Hurricane Melissa.

The ministry said it would continue to monitor the situation and work with industry partners to ensure that the market functions efficiently.

business@gleanerjm.com