Sun Apr 16, 2006
Carib Cement tries to prevent further catastrophe
Carib Cement tries to prevent further catastrophe
The management of Caribbean Cement Company is moving to reassure its shareholders and potential investors in the wake of concerns about the likely consequences of its recent product recall.
The concerns regarding the company's position stem from fears that Caribbean Cement Company may be saddled with multi-million dollar claims resulting from the recent release of several batches of inferior cement from its Rockfort Plant.
Days after the company acknowledged that there was a quality control problem, several stakeholders in the local building industry, including the Incorporated Master Builders Association, gave notice that they would be submitting claims for compensation.
The stakeholders asserted that they had to demolish structures which were built with the faulty cement.
But in a statement released to the major newspapers, the management of Caribbean Cement Company says it is working to settle most of the claims by the end of this month.
The company says based on the number of claims and the figures stated in the claims received so far, it does not expect the final cost of the compensation to impact significantly on its net worth.
After suspending the distribution of cement for nearly one week, the company resumed normal operations just over two weeks ago.
Comment