Caribbean Cream, which makes the Kremi brand of ice cream, has announced that it completed the installation of its $180-million ammonia refrigeration plant in its latest quarter, which will increase its production capacity by 20
The plant was partially financed by $100 million in new loans.
”The refrigeration plant adds speed at the production line, so the ice cream sets faster,” said Christopher Clarke, CEO of Caribbean Cream. The plant increases efficiency by
The company finished the plant in its third quarter after starting the project within the financial year. As a consequence, the company’s fixed assets increased to $659 million as at November 2018, from $487 million a year earlier.
With improved refrigeration, the company will be able to freeze products faster. That means that since the factory already operates near full capacity, the increased freezing will allow for greater production during high-demand periods, such as summer and other holiday periods.
”Now we can sell more,” stated Clarke in an interview with the Financial Gleaner on Monday about the plant, but he stressed that the increased productivity will not correlate to an equal rise in sales.
For its third quarter ending November 2018, Kremi made $348 million in revenue, or 9.0
The Caribbean Cream CEO remained mum on future plans for
“It is a game changer for the manufacturing sector. It changes the philosophy for us and other companies. So you can expect more plant upgrades in the future from Caribbean Cream, and also expect other manufacturers to do the same,” said Clarke.
He anticipates a positive outlook for the remainder of the financial year ending February based on steady commodity prices and a relatively stable dollar.
“Basic ingredient costs are stable, so it won’t disrupt the production flow,” he added.