Local manufacturers receive grant funding

TRADE and Industry Minister Paula Gopee-Scoon has presented two local manufactures with grant funding to assist with the acquisition of new machinery and equipment.

In a release, the ministry said the total grant funding amounted to $471,867.

The release said the Grant Fund Facility (GFF) was launched in November 2017 and remained accessible to small and medium-sized enterprises (SMEs) to provide support for capacity building and technological advancements across various non-energy sectors of the economy, including manufacturing.

Gopee-Scoon congratulated the two recent beneficiaries, Pinguino Purified Water Limited (Pinguino) and Caribbean Adhesives and Chemicals Limited (CACL), on their “aptitude to strategically invest and expand amidst the unprecedented times being experienced as a result of the on-going pandemic.”

She was quoted as saying, “These manufacturers have capitalized on the financial resources afforded to them as they embark on their new ventures. Their implementation of new technology and decisions to diversify and expand reflect their inclination to not only survive, but thrive and increase their competitiveness.”

Pinguino, a domestic manufacturer of purified and alkaline water, was granted funding in October 2021 in the amount of $221,867.00 to assist with the manufacturing of recyclable bottles.

Pinguino is currently expanding its operations and extending its product line to include additional sizes of bottled water for both the local and export markets.

Rather than importing new packaging material, the company is in the process of purchasing new machinery and equipment to locally produce them as a form of backward integration, the release said.

“Additionally, the company has been taking the necessary strides to successfully penetrate foreign markets and bolster local exports. To aid its expansion, Pinguino required new semi-automated machinery, for which it applied for funding. The acquisition will ensure consistency in the production of the bottles and aid in improving the company’s competitiveness in export markets,” the release added.

Caribbean Adhesives and Chemicals, a medium-sized enterprise operating in the chemical products sub-sector of the manufacturing sector, received funding under the facility in February 2022 in the amount of $250,000.00 to assist in the production of packaging material for its products.

The company manufactures and distributes a range of solvents, adhesives and chemicals, including the entire Dunlop line of products, for which metal cans are predominantly used as packaging.

“As CACL is actively expanding its exports, the company requires not only an increase in packaging material, but a consistent supply to sustain projected demands. In lieu of importing finished metal cans, CACL took the decision to invest in a semi-automated assembly system to domestically manufacture metal cans for use in the packaging of its products, and for commercial sale.

“In addition to this backward integration initiative, the company is concomitantly diversifying its operations and creating an additional revenue stream,” the release added.

It also said CACL was one of 10 businesses selected for the first cohort of the export accelerator programme, being conducted by ExporTT Limited, in recognition of its export potential.

This programme provides training, support and one-on-one coaching to bolster export strategies and increase markets. The company is already involved in regional markets and is moving towards entering into international markets.

The ministry said it was anticipated that these two expansion projects will result in a direct reduction of imported finished goods which will lead to preserving foreign exchange.

To date, the ministry said 23 SMEs have been approved for funding under the fund and approximately $4.3 million has been awarded for various activities across eligible sectors.

The projects of these beneficiaries represent an accumulative investment of over $11.5 million between November 2017 and February 2022. In addition to the indirect employment created through the increased economic linkages, these projects have, to date, created both permanent and temporary job opportunities, the ministry said.

Under the fund, SMEs that have been in operation for a minimum of two years in the designated sectors, can access 50 per cent, up to a maximum of $250,000.00, of the cost of new capital requirements/expenditure.

These eligible sectors include financial services, maritime services, aviation services, fishing and fish processing, software design and applications, creative industries, agriculture and agro-processing, and manufacturing.