Pacific Cement Limited (PCL), one of Fiji’s key cement manufacturers, has announced a temporary halt in production for the next two to three months due to a mill breakdown that occurred two weeks ago. This development follows a series of previous downtimes caused by equipment issues, impacting both production and financial performance.
In response to the situation, Fijian Holdings Limited (FHL), the parent company of PCL, is coordinating efforts to import cement to avoid potential shortages in the local market. FHL Group CEO Jaoji Koroi stated that a damaged mill part has been sent to Australia for repairs, with expectations for the operational shutdown to last up to three months. In the meantime, PCL is managing its existing cement inventory and rationing supplies while keeping key stakeholders informed about the timeline for resuming operations.
Historically, PCL has experienced similar challenges; back in 2017, the company imported 25,000 tonnes of cement from Vietnam during a previous mill breakdown to meet local demand. Despite facing these recurring issues, PCL is currently exploring ways to optimize production processes and is committed to investing in modern, environmentally-friendly equipment to enhance competitiveness.
Interestingly, the cement production and construction activities in Fiji were already undergoing fluctuations prior to this incident. Recent reports indicated that construction work valued in Fiji saw an 8.9% decrease compared to last year, but there was also evidence of rising demand for construction materials, hinting at a potential rebound in the future.
This commitment to imports, alongside ongoing investments in infrastructure improvements, reflects PCL’s dedication to maintaining supply chains and could facilitate a smoother recovery as economic conditions begin to stabilize. Ultimately, addressing these operational challenges not only reinforces PCL’s role in the industry but also signifies an opportunity for future growth amidst the temporary setbacks.
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