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Mainland sees upsurge in demand for cement
published: Sunday | May 11, 2003

Ayanna Kirton, Staff Reporter

AFTER FOUR years in the hardware business, Mainland International has become one of the island's leading cement suppliers.

Their success is due largely to their competitive rates and the consistent supply of the product.

One common reservation among local builders is the consistency with which cement is supplied by wholesalers, a reality that makes them wary of opting for new suppliers.

Though prices are considerably marked up, many continue to depend on larger cement companies because of more reliable supply levels.

"We have a steady supply of cement and we import (approximately) 130,000 tonnes annually," said Mainland's group executive of investments, Garth Walker.

CAPTURING THE MARKET

Mainland has been able to capture about 14 per cent of the total market due in part to Jamaica's largest cement manufacturer, Carib Cement Company's inability to meet the demands of the market.

Last year, the total demand amounted to approximately 800,000 tonnes with Carib Cement meeting only a fraction of that demand.

Mainland's vice president of operations, Jody Myrie, attributes the high demand for cement to an increase in construction levels.

"Shelter is a big part of our existence," he said, "the increase in low income housing developments, growth in domestic renovation levels, the construction of roads, and even natural disasters all add to the increase in demand."

Mainland's positive gains are also a result of competitive prices which Myrie says the company can afford to sustain because they are on par with international production costs.

According to him, both Carib Cement's production costs and its mark-ups are high which have led to an increase in the price of cement which now stands at $42 per bag. The quality of Mainland's cement also makes it a highly favoured input in the construction process.

"The cement we import is of a finer grade than our competitor's. It dries quicker, hardens more rapidly and also gains strength quicker," said Myrie.

PROMISING MARKET

Since its opening in 1999, Mainland has specialised in providing construction, household, gardening, and pharmaceutical items.

With over 30,000 items available, its Super Home Centre, located just outside Spanish Town is said to be the biggest in the island.

Mainland's decision to enter the cement market stemmed primarily from the shortfall in local supply and according to Walker the response has been very promising.

The company sells about 125,000 tonnes of cement annually which it imports from China, Indonesia, and Thailand.

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