End of building boom continues to hit explosives firm

THE CONSTRUCTION sector’s continued collapse blew a further hole in profits at industrial explosives specialist Kemek last year.

Its latest figures show sales fell by almost 40 per cent to €15.5 million last year from €25.2 million in 2009. Pretax profits halved to €1.2 million last year from €2.5 million in 2009.

In 2007, the year the building boom peaked, the company had profits of €17 million. Its surplus went into rapid decline from that point.

Kemek, which is 50 per cent owned by building materials group CRH, yesterday blamed the continued decline in construction for the fall in sales and profits. It said in a statement that house-building had virtually collapsed while commercial activity remained depressed.

“In addition, following the completion of the motorway network connecting Dublin with the major regional centres, no significant infrastructural projects are planned.”

Kemek described the outlook for the rest of the year as “challenging”, and it expected tough trading conditions to continue into 2012.

Shortly after its reported a fall in profits for 2009 last year, Kemek announced it had laid off over one-third of its staff. The company axed 36 jobs to reduce its workforce from 91 to 55.

Kemek’s joint owner is France’s EPC group, one of Europe’s biggest providers of explosives.