Business: PARAMOUNT FORGES AHEAD

-Lube Plant nearing completion; Bleach Plant Acquired

Diversified chemicals/raw materials company Paramount Jamaica is moving to strengthen its presence in the chemicals market and to continue the transition from a trading company to an eminent manufacturer.

Addressing the company’s Annual General Meeting at Kingston's Knutsford Court hotel on Saturday, CEO Hugh

Graham that paramount had concluded negotiations with Seprod to buy the bleach plant formerly held by that company and located at East Bell Road in Kingston. He said he expected operations to begin at the acquired plant “early in the new calendar year.”

In assessing the importance of the acquisition, Mr Graham said, “In taking this opportunity, we not only acquire the plant, we also get ready-made contract manufacturing business, including existing customers of Seprod in this sphere.”

Paramount Chairman, Radcliffe Knibbs took the opportunity to introduce two new members of what he called the company’s Management Lead team, namely former Wray &Nephew Marketing Director Gary Dixon, who will serve as Chief Revenue Officer, and Gregory Wildman, who will serve as Chief Financial Officer, has served in a similar capacity at Digicel Play.

In his capacity, Dixon gave an overview of the company’s performance in its key business divisions and forecasts for the year ahead. In the company’s core business of chemicals, there was 8% growth over the previous year, with Paramount – according figures Dixon supplied – holding a roughly 40% share of the market. “We plan in this financial year to boost that by about 7 percentage points” he told the meeting.

Continuing, Dixon identified the construction sector as another key area of growth, particularly given the activity in the tourism/accommodations sub-sector. “Not only is there robust growth in this sub-sector, but there is an increased need for more specialized raw materials, which we supply, so we are expecting significant growth of our business in this area,” he said.

His presentation regarding the lubricants business was supported by an overview from Mr Jim Kudis, of Allegheny Petroleum in the U.S. which is a 50-50 joint venture partner with Paramount in the manufacture and distribution of a range of lubricants. Mr Kudis told the meeting that despite some delays occasioned by the inclement weather, work on the plant should be complete within a month. 

He emphasized that the facility as designed and being built to world-class standards.

“We have spared no expense to ensure that the installations are absolutely of the highest quality, both in equipment and workmanship,” he said. Mr Kudis added that team from the Allegheny headquarters in Pennsylvania had come to Jamaica to work on the project and that in short order, another consultant will be visiting to train in the blending and testing techniques, in particular to train a lubricants Master Blender.  

In terms of capacity at the newly acquired bleach plant, Mr. Graham noted that Infrastructure continues to be put in place, in line with the safety regulations that the company has already been guided by. He added that a top supplier to the company – out of the southeastern US - had provided comprehensive training on safety, operation and emergency response techniques, and that Jamaica Bureau of Standards certification will be secured in due course.

The meeting was also provided with a brief overview of the financial performance for the year ended, as well as a peak at first Quarter figures for the current year. The latter showed revenues growing by 31% over the comparable period last year, with gross profits rising by a sharp 124%. Gross revenues for the year ended were J$1.16 billion dollars, or a 13% increase over the previous year. 

Founded in 1991 by Graham, Paramount Trading (Ja.) Ltd. began operations in Kingston, as a manufacturers’ representative and commission agent.  In addition to the CEO, the Founding Directors include Daryl Fong Kong and Richard Rogers. Paramount is the premier supplier of food and industrial chemical raw materials in Jamaica. The company distributes Sika Construction Products (concrete admixtures, waterproofing/moisture protection, floors and protective coating, sealants and elastic bonding, raw material chemicals, Allegheny Petroleum lubricants and oils).