August 19, 2020

Caribbean Broilers has already expended three-quarters of the US$120-million ($18-billion) expenditure planned on its production facility in St Catherine, called The Nest, but says COVID has hampered progress on the project. Still, the poultry company, which trades as CB Group, expects to start rolling out production there by year end. “We are pushing along and the facilities are being built, but we are a bit behind where we want to be,” said CB Corporate Affairs Manager Dr Keith Amiel. “The company expects to start producing at that plant by Christmas and then reach full capacity by mid-2021,” he said. Development of The Nest at Hill Run, St Catherine, is being done in phases over a span of seven years. The complex will consolidate all of CB’s business operations in a single location, but structured as three independent units, CB Group said last year. CB’s poultry processing plant, to be relocated from Arnold Road in Kingston to Hill Run, will process about 100,000 birds per nine-hour shift. The waste from the processing plant will be converted to other uses to augment other elements of the operation, including a feed mill. CB intends to produce 30 types of feed at the mill for both the local and export markets, Dr Amiel said. Currently, CB exports small quantities of feed, but the plan is to ramp up sales to around 10 countries in the region. “In order to justify the expense of the feed mill, we need a wider consumer base,” Amiel said. The fertile lands at The Nest will serve as the large wholesale farm for the company and neighbouring contracted farmers. “The facility will function as a mother farm with the production of onions, pepper and sweet corn, “ said Amiel, explaining that CB would buy in bulk and hold farmers to a standardised grading system, which, in turn, would allow the poultry group owned by the Hendrickson family to distribute to large supermarkets and hotels. CB Group’s administrative offices are currently scattered around the country, but will eventually find a home at The Nest. A power plant is also being constructed at the facility to satisfy all of The Nest’s energy needs. Power utility Jamaica Public Service Company Limited and its affiliates will develop and own the 10-megawatt power plant that will be fuelled by liquefied natural gas supplied by New Fortress Energy.   Source: The Jamaica Gleaner by: Steven Jackson

Equipment rental and fleet management company Ameco Jamaica is now a part of the Stewart’s Automotive Group, which has rebranded it as JAMECO. The transaction was announced by the seller, American company Fluor, as a US$22 million deal in market filings. That translates to more than $3 billion in local currency. Stewart’s Automotive Managing Director Duncan Stewart said the acquisition has been over one year in the making since Stewart’s approached Ameco with a takeover proposal. “We approached them to ask if they were willing to sell and they agreed. Subsequent to that they said they wanted to sell the worldwide operation. I would say we were fortunate with our timing,” Stewart said. Fluor Corp, the parent company for Ameco, said in an SEC filing that it sold “substantially all of the assets of Ameco Caribbean to Stewart’s Automotive Group in Jamaica for $22m”. The company, which had previously announced its plans in September 2019 to fully divest Ameco construction rental company, said the sale of the Jamaican operation marks the initial step in the divestiture. Stewart said that over the year of talks with Fluor included different levels of approval, due diligence and meeting of performance markers. Ameco has been providing fleet and equipment management solutions in Jamaica since 2001 and presently operates from four locations: Spanish Town Road in Kingston; Montego Bay; Mandeville, Manchester; and Runaway Bay, St Ann. Stewart says the takeover vaults Stewart’s Automotive to the No. 1 spot as the largest fleet operator in Jamaica. The more than 140 staff employed there – with only two exceptions – will be transitioning to JAMECO, he said. JAMECO will continue to be led by Brian Pengelley who was the country manager for Ameco Jamaica. The fleet management company provides services to companies such as Jamaica Public Service Company, Jamaica Broilers Group and Tastee Patties, among others. Stewart says all the existing contracts will transition to JAMECO. “We basically bought the continuing business. The vast majority of the staff remains intact, so too the locations and the client arrangements,” he said. Stewart’s Automotive Group operates a range of dealerships for cars and trucks. It represents brands such as Mercedes-Benz, Mitsubishi and Suzuki. Member company Stewart’s Industrial, located at Bell Road in Kingston, did business with Ameco Jamaica even before the acquisition, Stewart said. “The Bell Road operation is a dealership where we do sales, service and spare parts for industrial-related items such as trucks, construction and mining equipment, and so on,” he said, while noting that Stewart’s has been Ameco’s largest supplier. The acquisition brings the partnership fully into the Stewart’s tent. JAMECO will fall under the umbrella of Stewart’s Automotive Group but operated as a separate entity. “It will not be a direct subsidiary but rather a stand-alone company under the same owner. For us it is a signal of our confidence in the future of the Jamaican economy,” he said.   Source: The Jamaica Gleaner by: Neville Graham

After a near six-month stalemate and swearing-in of Irfaan Ali as the new president of Guyana, Jamaican businesses have renewed their plans to enter the South American country, which is expected to have positive gross domestic product (GDP) growth of 53 per cent in 2020, despite COVID-19. Following the first offshore discovery of the black gold by ExxonMobil in 2015, Guyana became the centre of attention among several businesses and multinationals looking to capitalise on the untapped economic value of the new resource which the English-speaking country didn’t have before. However, a vote of no-confidence against the Government forced the country into an early election as mandated by the provisions of the constitution. The election fell into disarray following disputes over attempts to alter the election results. This unresolved issue made many businesses apprehensive of setting up shop in Guyana until the election results were finalised. That, along with COVID-19, delayed investments into the country as more firms became cautious on expansion plans. The election result was eventually resolved on August 2, giving businesses the confidence to renew their plans for business in Guyana. When the Business Observer canvassed several local firms, the feedback received was mainly positive as they geared up to execute their plans. One such company was the National Commercial Bank Financial Group (NCBFG) which, through its subsidiary NCB Capital Markets Limited (NCBCM), funded the construction of a new landmark facility in January by Nabi/KCL Oilfield Construction Services . President and CEO of NCBFG Patrick Hylton welcomed the resolution of the elections in Guyana as the group develops an operating model for country. “NCB Financial Group Limited is happy that the general election stand-off is now settled, and we look forward to pursuing opportunities in a Caribbean territory poised to experience the largest GDP growth over the medium term,” Hylton said. NCBCM will remain the main vehicle at the moment through which NCBFG can derive value in the South American state.   Source: Jamaica Observer by: David Rose