The listed company Paramount Trading Jamaica Ltd announced a US$4-million joint venture initiative with overseas-based Allegheny Petroleum to form a manufacturing plant.
It is expected to ramp up Paramount’s total revenues in excess of $1 billion in the first year, stated chief executive officer and founder Hugh Graham at the annual general meeting held at the Courtleigh Hotel in Kingston on Saturday. That would grow annual revenues by some 15 per cent from the $869 million earned for its year ending May 2015.
“As we look to the future there is greater growth in store for Paramount Trading. Plans to increase shareholder value in the new financial year include but are not limited to the expansion of our business through a strategic commerical alliance with Allegheny Petroleum. They are equally as committed to the success and growth of this joint venture and by extension the projected increase in shareholder value,” he said later, indicating that it would result in the local manufacturing of lubricants, which it recently started distributing. “The joint venture is valued at US$4 million or just under J$500 million.”
Earlier this year, Graham indicated that the company would announce a major investment, but declined to give details.
Paramount currently operates five business units, including the distribution of chemical products, the distribution of SIKA-branded products, manufacturing of commercial cleaning agents, transport haulage services and lubricants.
The lubricants division was the latest addition to its line, earning $9.0 million for the year. Its chemicals division earned the highest of any other division at $753 million in revenues.
Graham described the financial year as significant in terms of streamlined and restructured operations. Its sales division was fitted with new technology and ‘solid’ leadership. Its customer service department was ‘married’ to the transport division, while it also expanded its logistics and purchasing department.
“As such, we have additional warehouse space as we have outgrown the capacity of our current facilities. This is in addition to our three warehouses: two on Waltham Park Road and one at Bell Road, ” he explained.
Paramount remains one of the fastest-growing companies listed on the Jamaica Stock Exchange. Its shares were listed on the 31st of December 2012.
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