As the sole manufacturer of polyvinyl chloride (PVC) pipes locally, FosRich Company Limited is seeking to extend this line of business with the additional production of other pipes and fittings.
The manufacture of fittings, which includes elbows, couplings, caps, adapters and larger standard dimension ratio (SDR) pipes, is expected to be carried out at its Clarendon-based outlet, where it also currently repairs transformers through a partnership with Jamaica Public Service (JPS).
“At Hayes we want to do a three phase development, of which phase one has already started. Phase two is where we are going to be doing PVC fittings and this is expected to be up and running by the end of April. After this, we are expecting to commence the manufacture of the larger SDR pipes which will be a part of our third quarter projects,” said Cecil Foster, managing director of FosRich during a Business Observer forum held on Wednesday last.
He said that of the large property in Clarendon, some six acres of the space was retrofitted to facilitate the repair and manufacture businesses with current infrastructural and preparatory work now underway to house its planned PVC pipes and fittings manufacture.
“The capital outlay for that is going to be just under $400 million,” Foster stated.
He said that with electrical services accounting for almost 70 per cent of the company’s business, the need for further expansion is always vital.
The initial manufacture of PVC pipes, largely used as electrical conduits and drains, commenced in 2019 through an over $150 million capital injection which the company used to fund equipment, training and market preparation. The foray into this market stemmed from high import costs along with the pressing need to venture into an area that has been left untapped for several years.
“We not only import and distribute electrical lighting products and energy products but we manufacture PVC conduits and pipes under the brand name Solid, and we are the only manufacturer of PVC pipes in the country right now, of which we are proud,” Foster stated.
The lighting, electrical and energy company, which has been making significant strides in its business over the last 25 years, said that while its current projects and plans were fully capitalised, new opportunities are always being sought to propel more growth in revenues. This Foster said also comes against a backdrop of rising opportunities in the construction/home development sectors which has managed to secure growth amid the ongoing pandemic.
“The products that are going to be in demand are always going to be in the areas of housing, energy, etc and with the Government’s plan to build over 70,000 houses over the next four years – this will have significant effects for employment and will also infuse itself into the economy, in terms of increased business for hardware and electricals, among other services,” he said, further noting that his company was positioning itself to take advantage of these opportunities.