Dionne Rose, Business Reporter

Jamaica Pre-mix Limited has struck a $1.63 billion deal with a French-owned multi-national to set up four aggregate plants in the island under a new company called Jamaica Aggregates Limited (JAL).

Ken Barrow, managing director of Jamaica Pre-Mix told the Financial Gleaner that his company and new joint venture partner Lafarge would have equal share in JAL.

The two will also share 50/50 in the financing of the company, under a deal that Barrow said was valued at US$23 million.

Same high-quality products

Pre-Mix, a near five decade old company, will be operator of the new company, whose offices will be in Kingston, according to chairman L Fuller Duncan.

"Over the next several months, the Jamaica Pre-Mix and Lafarge teams will structure the operations accordingly to produce the same high quality products and services that our customers expect," said a statement from Fuller.

Under the agreement with Lafarge, which has a base in North America, Jamaica Pre-Mix, a local supplier of ready-mix concrete and aggregates, will contribute towards development and operations.

Opportunity to expand

"We see it as an opportunity to expand our operations and markets," said Barrow.

He expects the operation to double Pre-Mix's output, now at an annual two million tonnes of aggregate, and grow its export market.

JAL will operate the four aggregate plants located at Yallahs, St. Thomas; Agualta Vale, St. Mary; Martha Brae, Trelawny and Paul Mountain in St. Catherine.

Some 60 to 70 staff members who currently work at Jamaica Pre-Mix are to be deployed to the new operation, but Barrow said the number would increase.

Lafarge, whose sales of euro17.6 billion last year netted the multinational euro1.9 billion of profit, is considered a world leader in building materials, including cement, aggregates and concrete and gypsum.

The company is operational in 76 countries, and has a base in North America.

Jamaica Pre-Mix currently exports in the region to Turks and Caicos, Cayman, Trinidad and Cuba.

But according to Barrow, Florida will be added to the company's markets under the agreement.

"With a company like Lafarge, it is really a good opportunity for us," he said.

Last year, Jamaica Premix exported 400,000 metric tonnes of ready-mix concrete aggregate to the region.

dionne.rose@gleanerjm.com