Trinidad Cement Limited
Annual Report 2012
36
The Year in Review
Group CEO’s Report and Management Discussion 2012 (continued)
working capital to execute timely maintenance programmes created production
challenges in the first, second and third quarters of the year respectively, preventing
ACCL from fully capitalising on the sudden demand for cement during the TCLStrike
and the buoyancy in both Guyana and Suriname.
In the premixed concrete sector, the Readymix (W.I.) Limited Group (RML) sold
111,200 m
3
of concrete in 2012, representing a 2% increase over the 2011 volume
of 108,600 m
3
. The parent company in Trinidad accounted for 89% of the Group’s
sales. In Trinidad, it is estimated that the premixed concrete market size decreased
by 9%, from 522,000m
3
in 2011 to 481,000m
3
in 2012. This is a competitive market,
which is supplied by over twenty (20) active participants. During 2012, RML placed
greater emphasis on the sale of aggregate and pitrun as it strategically positioned
itself as a significant supplier of aggregates, particularly for the much-anticipated
construction of the San Fernando to Point FortinHighway project by the Government.
The packaging companies were, by extension, adversely affected by the lower
packaging volumes, which the Group’s cement companies required. Additionally, the
paper sack producing plant (TPL), located on the TCLcompound was also embroiled
in the 92-day industrial strike action. Paper sack sales were 26.8 million (2011 –
32.8 million), while sling sales were 325,700 (2011 – 375,400), declines of 18% and
13% respectively.
TheGroup’s strategy of aggressivemarket expansionwas alsohamperedparticularly
during the turbulent first half of the year.
4.0 GROUP OPERATIONS
Clinker Production (‘000 MT)
2011 2012 2011 2012 2011 2012
800
600
400
200
0
TCL
CCCL
ACCL
494
656
653 628
160 184
Cement Production (‘000 MT)
2011 2012 2011 2012 2011 2012
1,000
800
600
400
200
0
TCL
CCCL
ACCL
654
827
760 766
176 223
Cement Operations
Clinker production is the key profit driver of the Group. In 2012, the Group produced
1.3 million MT of clinker, 11% below the 1.5 million MT for 2011.
A comparative clinker and cement production by the respective plants for 2011 and
2012 are illustrated in the charts above.
