Remanufacturing Plant Coming to Hague
A major investment is coming to Trelawny parish. An auto parts remanufacturing plant is scheduled to begin operation in Hague, Trelawny.
What Is Remanufacturing?
According to Wikipedia, remanufacturing means “the rebuilding of a product to specifications of the original manufactured product using a combination of reused, repaired and new parts”. It requires the repair or replacement of worn out or obsolete components and modules.
The location for the remanufacturing plant is the Hague factory complex on the Falmouth Bypass. The industrial complex is on the other side of the highway from the Hague Housing Development.
What is i-Card?
i-Card, incorporated in 2015 leased 40,000 square feet of space from the Factories Corporation of Jamaica in Trelawny. i-Card stands for Inter-Caribbean Automotive Parts Remanufacture Distribution Company.
The company will begin business as early as next month (February 2018). Initially, i-Card will commence only as a seller of re-manufactured auto parts. However, by 2019, the company is projected to begin re-manufacturing parts of its own.
The company is headed by Montego Bay businessman Gordon Baldie. He is known as the owner of popular Montego Bay car dealership, Cars to Go.
Baldie was one of four entrepreneurs who pitched their proposals with hopes of getting venture capital at the Jamaica Stock Exchange (JSE’s) 13th Regional Investments and Capital Markets Conference on Wednesday. He turned out to be the winner.
Baldie, in his pitch, indicated that the company was seeking $250 million in exchange for a negotiated stake in the company. He said the funds would allow the company to pay for the property and for inventory of spare parts. The move to structure the business gained intensity over the last two years with Baldie travelling to Asia and Eastern Europe to examine best practices and to solidify deals with remanufacturers in those territories.
Speaking to the financial Gleaner after his win, Baldie said that he “loves” – spare parts. Remanufacturing will allow the company to sell retrofitted used parts locally and within the region.
“It will result in saving of 40 to 60 per cent when compared with the original manufactured parts.”
The company, while planning to import new and remanufactured parts initially, will itself start remanufacturing next year. i-Card received special economic zone status which, the company says, allows it to import products designated for the region without duty; while attracting duty for products destined for the local market. Baldie added that i-Card recently received its NCC certification as a registered contractor for government projects, which allows it to bid on local fleet contracts.
i-Card projects that in four years, they will earn US$18 million ($2.2 billion) in revenue per annum. Of this amount US$10 million would comprise local sales and the remainder from regional distribution. The company also projects a profit margin of 30 per cent of sales.
This is a great investment for Trelawny parish as the parish continues to grow following the Royal Caribbean Cruise Line’s Falmouth Pier development. It is not certain how many new jobs this will create for the parish.