Proactive Government action stabilising cement market

Minister of State in the Ministry of Industry, Investment and Commerce Delano Seiveright, has defended the Government’s handling of recent cement supply challenges, telling Parliament that proactive intervention, expanded imports and continuous market monitoring are helping to stabilise the sector and support ongoing construction activity across Jamaica.

Responding to a Private Member’s Motion brought by Opposition Spokesman on Industry and Investment, Anthony Hylton, Seiveright said the Government has been actively managing the situation amid operational disruptions affecting suppliers and increased demand driven by housing, infrastructure and reconstruction projects.

In his presentation, Seiveright pointed out that Jamaica’s current cement import regime is guided by the Safety Net Principle established under Cabinet Decision No. 11/13 in 2013.

The Minister noted that the policy framework was introduced during Hylton’s tenure as Minister of Industry, Investment and Commerce and has remained the foundation of Jamaica’s cement import system for more than a decade.

“The framework has provided Jamaica with the flexibility to respond to supply disruptions while preserving the long-term viability of domestic cement production,” Seiveright told the House.

He explained that operational challenges at Caribbean Cement Company Limited (CCCL), including equipment failures and weather-related disruptions, together with warehousing damage suffered by Buying House Cement Limited (BHCL) following Hurricane Melissa, prompted Government intervention to safeguard supply.

According to Seiveright, the Ministry approved import permits, totalling 170,000 metric tonnes, including 100,000 metric tonnes for CCCL and 70,000 metric tonnes for BHCL, along with approval for BHCL to utilise 6,848 metric tonnes from its unused 2025 allocation.

He further disclosed that Cabinet subsequently approved additional import allocations totalling 490,000 metric tonnes across six companies to further strengthen market supply and meet growing demand.

The Minister stressed that the issue extends beyond cement availability and directly affects one of Jamaica’s largest employment sectors.

Between January 2025 and January 2026, the construction industry employed between 131,200 and 146,700 Jamaicans, accounting for approximately nine to ten per cent of total employment.

“While construction would be the sector most directly affected by a significant supply shock, spillover effects could also be felt in transportation and storage, wholesale and retail trade, manufacturing, and real estate and business services,” Seiveright said.

The Minister reported that the Ministry remains in constant contact with manufacturers, importers, distributors and construction stakeholders, while the Consumer Affairs Commission continues to monitor stock levels, availability, supply challenges and pricing trends.

He also announced that technical support has been secured through an international development partner to strengthen the Ministry’s ability to anticipate shortages and price volatility through enhanced predictive modelling.

Looking beyond the immediate challenges, Seiveright welcomed plans by Caribbean Cement to establish approximately 12,000 square feet of additional warehousing space in Spanish Town and explore further storage facilities in Mandeville.

He credited Portfolio Minister Senator Aubyn Hill for providing policy direction throughout the Ministry’s response and emphasised that the Government remains committed to ensuring adequate cement supplies for national development projects.

“Under the leadership of Minister Hill, the Ministry has remained proactive in monitoring the market and taking the necessary steps to safeguard supply. Given the measures the Ministry has instituted, we foresee no prolonged shortage of cement,” Seiveright said.

He added that the Ministry will continue market surveillance throughout 2026 and stands ready to take further action where necessary to protect consumers, support the construction sector and keep Jamaica’s development agenda on track.