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On Thursday,  the Supreme Court began looking into ARC Manufacturing’s J$2.8 billion lawsuit against Tank-Weld for predatory pricing concerning the sale of rebar in the local market.

Tank-Weld is regarded as the leading seller of steel in the Jamaican market and has made significant investment in that arm of its business.

Executive Chairman of ARC Manufacturing, Norman Horne, maintains that Tank-Weld has been engaging in anti-competitive practices, selling steel below cost and driving out competitors.

Initially, the Fair Trading Commission (FTC) shared this view, and subsequently, the Supreme Court said, not so fast, this warrants a closer look.

The Horne/Bicknell fight will be watched closely by Jamaica’s business community for it has wider ramifications for pricing and the way competitors can operate on a more favourable playing field.

Jamaica has a free and open market system, and many disagree with price controls. There are those who argue that if Tank-Weld can offer cheaper steel rebar and still make a profit, then everybody benefits and it even helps Jamaicans at a time, post Hurricane Melissa, when raw material prices will become a big factor..

Then there are others that say, Tank-Weld has market dominance and is crushing competitors by coming in below cost and driving them out of business. Monopolies are not good for business  and the government must intercede.

Being a small market, Jamaica’s business environment tends to see a monopoly or, at best, a duopoly at work. Not many companies have the capital and infrastructure to hold a significant market share.

For decades, Cable & Wireless was the only game in town in the telecoms sector until Digicel came along in 2001 with lower prices and better services which saw Jamaicans flocking to the “Bigger, Better Network.”. There was very little Cable & Wireless could do about it and it lost the mobile phone market.

If a company can offer a better and cheaper product at scale, it is likely to succeed in Jamaica. To effectively compete, perhaps ARC should lower its prices

The chicken market is dominated by the Levy’s Jamaiaca Broilers and the Hendrickson’s CB Chicken both of whom have invested millions of US dollars in their operations to secure market share.

The cement market is dominated by Carib Cement a subsidiary of the Mexican multinational building materials giant Cemex which was founded in 1906. It reports annual revenue of US$18 billion and for the first quarter of 2026, its EBITDA reached US$794 million. Not many local players can go against a company like Cemex.

For decades, Red Stripe dominated the local beer market, seeing off new players who dared to go up against it. Red Stripe put in significant investment into its operations and built a notable export business. Founded by Jamaican company Desnoes & Geddes, it was first sold to Diageo and in 2015 to Heineken. These alcohol behemoths have the capital, the distribution reach and the marketing budgets that can fend off local competitors and give them a pricing advantage in an open market economy.

Toyota has been the number one car seller in Jamaica for many years but now faces stiff competition from Chinese-made cars. Some predict that over the next decade, Chinese vehicles will dominate the Jamaican market. Already BYD outsells Tesla. Why? Because they are cheaper, more reliable and are subsidised by the Chinese government.

The Jetour T2  SUV has become a big hit in Jamaica and sells for around J$9 million. It has practically the same specs as the Land Rover Defender, which sells for a whopping J$32 million. Can Stewart’s Automotive Group tell the Government not to allow Jetour T2 to be sold in Jamaica because their prices do not allow fair competition or shouldn’t the open market decide?

Chinese companies now dominate Jamaica’s construction sector. Any big project is now being built by Chinese companies, which have scaled access to cheaper raw materials. The Chinese forced Tank-Weld out of the construction business because it was unable to compete- that’s business. Even the Jamaican government turns to Chinese companies for big infrastructure projects. Why? Because they do what they say they can do, deliver on time and have the resources. 

Jamaica just doesn’t have the size or the spending to accommodate many competitors. Yes, competition is good for the consumer; there should be options, but the reality in Jamaica is clear to see. Jamaica’s banking sector is dominated by two players, one of which is a subsidiary of a Canadian global banking giant. NCB  has the most deposits, and Scotia is the biggest banking mortgage provider, surpassing both Jamaica National and Victoria Mutual.  That’s unlikely to change much in the near future unless a player can come into the market and force them to drive down their costs.

Norman Horne has built a fantastic business, and over the last two decades, ARC has become a significant player in the building materials space. Tank-Weld has invested in its own ports, and ARC has taken issue with its special licence to operate a private port, giving it an unfair advantage in pricing. That was rightfully thrown out and should have no bearing in this case.

For years, steel rebar prices have remained steady with no major undulations that did not take into account world prices and output. Tank-Weld is dismayed that disgruntled competitors think it will sell at below cost, drive out competitors before raising prices. This would be an unethical practice, and Tank-Weld has made it clear that such sophistry is beneath it.

What may very well happen is that the Chinese, with their end-to-end supply chain operations, may look to lead steel sales in Jamaica, given that the big projects are being built by their own companies, thus driving out insignificant (compared to them ) Jamaican companies.

Being able to get a foothold in the market is determined by scale. Tank-Weld has been the market leader because of its distribution points, its contacts, suppliers and the strength of its brand. It has built itself into an integrated building material operator, which has insulated it from any serious competition.. The ports were a significant investment, and Tank-Weld has made a stand to supply the Jamaican market.

The Supreme Court will have to give considerable thought to its decision; there is plenty at stake.  Will we see a new approach to price controls in the country? This could be a defining moment for Corporate Jamaica.