The Tribune

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

A fledging Grand Bahama concrete plant is aiming to “make some moves” following the December launch of its final phase following a total $8.2m capital investment.

Glennett Fowler, principal of Heroic Concrete and Concrete Products, told Tribune Business that it plans to “ramp up in the New Year” after its block-making business - with a 1,000 per day production capacity - came online the week before last.

Revealing that an extra ten staff have been hired for the block manufacturing segment, taking its workforce to 21 and expanding Heroic’s total staff to 41, she voiced optimism that the company will “be a significant player in the market in the next 24-36 months” as it seeks to supply Carnival’s $600m Celebration Key cruise port and other investment projects targeted at Grand Bahama.

Heroic’s business model focused on having both the concrete block and ready-mix concrete operations running side-by together, and Ms Fowler told this newspaper that while there have been delays in launching the former this has worked to the company’s benefit as it has been able “to get the capacity we need” to support both Grand Bahama developments and distribution of its products to other Bahamian islands.

And, with Gold Rock Corporation having previously closed its concrete block-making business following a well-publicised fight with the Grand Bahama Port Authority (GBPA) and its affiliates several years ago, she asserted that Heroic’s emergence will fill the market void that was left and help reduce foreign exchange outflows by providing a replacement domestic production source.

“Everything is up and running,” Ms Fowler told Tribune Business. “This is a significant achievement because we have not been able to have blocks on the island of Grand Bahama for quite some time now, and having the plant coming fully online will really support a lot of projects and eliminate the need to import blocks.

“I think it’s a significant economic boost to the island. We’ve had to employ additional staff to meet production capacity. For this phase we have engaged an additional ten persons and expect to ramp up in the New Year with some projects we have on the island and distribute to other islands.”

Ms Fowler said Heroic has partnered with a “key distributor”, who she did not identify, to manage the supply of its concrete blocks and other products to customers in other islands. She added that distribution relationships have already been “confirmed” with firms based in New Providence, Abaco, Eleuthera and Exuma, thus ensuring all major islands with significant economic development are covered.

“With the blocks just coming online last week from the plant, we have seen significant purchase orders (POs) for large quantities,” Ms Fowler told this newspaper. “We’ll be supporting those over the next several weeks into the New Year....

“There’s been some challenges along the way, but we’ve been very good at pivoting and ensuring we stay ahead of the market and demand. We have the capacity to ramp up at any time, and block capacity remains at 1,000 per day so we have been able to overcome some of the challenges we faced, whether it was construction delays or inclement weather. That impacts sales given the nature of our product.”

Ms Fowler and Heroic had previously told Tribune Business that they aimed to begin concrete block production on May 1, having launched the ready-mix operation in March/April this year. “We feel the market has responded to us quite well, and with consistency and on-time delivery we should continue to get our market share,” she added.

“I think we had a very modest projection, I would say, on getting into the market in Freeport. Freeport is in need of major development and, hopefully, as we get into the New Year we will start to see that only increase. We anticipate a very strong 2025.

“I believe that, in 2025, if Grand Bahama realises all the projects coming on stream we’ll be able to get a portion of market share against the competition in the market. I believe it will open up opportunities for everyone. Our business was built on both operations running simultaneously, so we expect to be in a good position to meet market demand.

Ms Fowler confirmed that Heroic, which has received financial investment and support from the likes of RF Bank & Trust and B2 Investment Holdings, a Bahamian family office headed by Cable Bahamas chief, Franklyn Butler, has “injected about $8.2m” into its business operations to-date. The company employs some 41 persons, split evenly between the block-making and ready-mix operations.

“I think for me it’s all about training and development now,” she told Tribune Business, “and making sure customer satisfaction remains high. As a new entity we have to make sure we offer quality. We’re above board with that, and are laboratory certified and American Concrete Institute certified.

“We have a group that will be going over for further training in the US in January so we can maintain the standard and compete not only in-country but at an international level. Even though we had to bring persons in for training we have a Bahamian staff complement that’s been training and learning at the level we need so we can support those contracts that come in from the international market.

“I think the timing is right. While we’ve had some delays it was to our benefit to a certain degree as we got the capacity we needed for the projects that are coming to Grand Bahama and it allowed us to take a look at distribution,” Ms Fowler continued.

“I don’t want to speak too early but I do believe that in the next 24-36 months we should be a significant player in the market. I think we’ve had a good market response. I think we have an opportunity to increase our market capacity by ensuring people know we are here. There’s still a lot of marketing opportunities we need to take advantage of because our team is working aggressively.

“I am pleased with where we are showing up. I’m looking forward, now we have both plants working as they should be, to be able to make some moves.” Ms Fowler said Heroic has also been focused on supplying Freeport’s residential and general contractors with their concrete needs as they strive to build more homes and ease a potential “housing crisis” as more investment projects progress.

Heroic’s launch coincides with potential real estate, resort and related infrastructure projects coming to fruition in Grand Bahama and elsewhere in The Bahamas. On the former, there is Carnival’s $600m Celebration Key project; Weller Development’s $250m Six Senses resort; the potential Royal Caribbean/ITM project at Freeport Harbour; and, maybe, the Grand Lucayan and Grand Bahama International Airport.

If all goes to plan, there will be a significant demand for concrete and related products on Grand Bahama alone. Western Atlantic University’s School of Medicine expansion is also poised to move forward, while Doctor’s Hospital’s new Freeport medical facility has progressed, and there are plans for a new public hospital for Grand Bahama.