Pacific Cement Limited (PCL), a major cement manufacturer in Fiji, has announced a temporary suspension of its production for two to three months due to a mill breakdown that occurred two weeks ago. This incident adds to a history of production interruptions linked to equipment issues, which have adversely affected the company’s financial outcomes.
In light of the current situation, Fijian Holdings Limited (FHL), PCL’s parent company, is taking proactive measures to import cement to prevent local shortages. FHL Group CEO Jaoji Koroi mentioned that a damaged part of the mill has been sent to Australia for repairs, and PCL is currently managing its existing inventory while rationing supplies. The company is keeping its stakeholders informed about the timeline for a return to full operations.
PCL has faced similar challenges in the past; notably, in 2017, the company brought in 25,000 tonnes of cement from Vietnam during another mill outage to meet local demand. Despite these recurring difficulties, PCL is exploring optimization of its production processes and is committed to investing in modern, environmentally friendly equipment to boost its competitiveness in the market.
Notably, the cement production sector in Fiji was already experiencing fluctuations prior to this breakdown. A recent report highlighted an 8.9% decrease in construction work compared to last year, although there remains a rising demand for construction materials, signaling a potential recovery on the horizon.
The decision to import cement, combined with ongoing investments in infrastructure, showcases PCL’s commitment to sustaining supply chains and positioning itself for a smoother recovery as economic conditions improve. By addressing current operational challenges, PCL not only reinforces its significance in the industry but also opens pathways for future growth despite the temporary setbacks.
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