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BICO’s Executive Chairman, Edwin Thirlwell.

NEW BICO PLANT COMING

BICO Limited is hoping to have a new manufacturing plant before 2018 ends.

The company is proposing to rebuild its ice cream manufacturing plant which was completely destroyed by fire in 2009.

It is estimated that the facility, which will be built across 10 000 square feet, will cost $3 million, directly employ at least six persons, and have the capacity to produce one million litres of ice cream annually.

Yesterday, Executive Chairman Edwin Thirlwell confirmed that the company is actively discussing the project, and they have already started a restructuring exercise to prepare for this and other projects planned for 2018.

“It has always been here. But in 2009 after the fire, by the time we got to 2010, it was the beginning of the downturn in the world economy and we did not have the confidence at the time to spend the money…However, while producing around the region has worked very well for us, at the end of last year we began to see faults arising in our supply route.

Suriname had capacity problems, Trinidad has got capacity and hard currency problems, Jamaica never came on stream and are now two years in arrears with their programme. So we have to secure our supply,” the Executive Chairman explained.

He noted that while the reestablishment of an ice cream manufacturing plant at BICO’s Harbour Industrial Park headquarters was under active consideration, successful implementation largely hinged on the provision of an enabling financial and regulatory environment. He revealed that discussions to date with the relevant Ministries of Government have been encouraging.

“We are having discussions with government about the concessions that would be available to ensure that we are a low cost producer because we want to be able to export around the region and beyond.

“I am hoping that Minister [of Industry, International Business, Commerce and Small Business Development] Donville Inniss will be able to arrange a meeting between us and the Minister [of Finance Christopher Sinckler] next week. We are not delaying the project.

“There is no point in ordering equipment unless we know that the factory is going to be viable in the first place. So those concessions must be finalised before we commit to the equipment. Then, we will be ready to go and move as fast as lightening. This is an important move for us,” he said.

Thirlwell made the revelation during a press conference held ahead of the company’s Annual General Meeting, scheduled to take place next week. He reported on a “flat performance in a year of challenges during 2017, noting however that revenues for January 2018 are showing a modest one per cent increase over January 2017.

On another positive note, the Chairman said the company’s share price has shown welcome improvement and was up 60 per cent over the previous year.

“The twelve months to 30th September were challenging. Total revenues were flat and margins came under significant pressure due to imposed taxes, resulting in increases in all operating costs including freight, raw materials and packaging,” he said.

He added that though the reality stands that some people are finding it difficult to freely purchase large household items, they are “still buying Magnums costing $7 and BICO ice creams”.

Acknowledging the potential for turbulent times ahead, Thirlwell said BICO is prepared to continue being innovative and resilient as it faces the difficulties of operating in tough economic times.

“Trading prospects for the remainder of 2018 remain uncertain. We will continue taking steps to minimise costs and maximise revenues. Our renewable energy initiatives will also continue in an effort to lower energy costs, which are a major part of overheads,” he said.
(AH)

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