After more than a year of barbed comments, animosity and fears of construction problems, Bermuda Cement Company (BCC) finally has a new lease.

Following closely on the heels of last month's strike by BCC staff, Wedco chairman David Burch yesterday announced the agreement which will see the company move to Dockyard's South Lot for a 20 year lease, with the landmark silo towers being demolished within the next two years.

The $3.5 million move will be financed from the sale of 20 percent of the company's shares with BCC now guaranteeing a smooth transition with no halt in the flow of cement. "I am pleased to report that the West End Development Corporation and the Bermuda Cement Company have reached agreement on the terms for a new commercial lease of the cement silo, storage and distribution facility and premises at the Royal Naval Dockyard," Lt. Col. Burch told the assembled Press yesterday.

"May I say that the negotiations were conducted in a spirit of co-operation and commitment to ensure the continued, uninterrupted flow of cement to the community. I, as chairman, would like to express the thanks of the Board for the satisfactory conclusion of this phase of the process and give an undertaking to continue to work with the BCC to ensure that what has been agreed becomes a reality."

The deal brings to a close a bitter period of negotiations which had many in the construction industry fearful for the future, with the closure of the company ? and therefore a massive hike in cement prices ? a looming threat.

As it is, BCC president Jim Butterfield confirmed there would be a "marginal" rise in cement prices to help absorb the cost of the new site, which will see two 45-foot domes replace the silos.

But the deal, which Lt. Col. Burch said saw both sides make considerable compromises, puts an end to months of uncertainty that began when it became clear BCC's 40-year lease may not be renewed at the end of 2005.

Mr. Butterfield accused the Government quango of being "unprofessional, pathetic, and impossible" to work with at that time after he was attempting to renovate the 21,000 square foot property after Hurricane Fabian seriously damaged it.

The $48,000 annual rent was another stumbling block, with Mr. Butterfield claiming last year that Wedco wanted to put it up to $400,000 ? it has now been fixed at two-and-half percent of revenue or $100,000.

BCC's six staff then went on strike last month over job insecurity, prompting panic buying from construction firms and effectively forcing Wedco into hurrying up the lease negotiations.

These have been finalised in recent weeks, prompting yesterday's announcement.

The deal includes:

lThe lease for the current plant being extended for up to two years;

lNew plant to be constructed in the South Basin;

lNew plant to be leased for 20 years;

lRent to be increased to two-and-a-half percent of gross revenue or $100,000 per year, whichever is greater;

lExisting plant dismantled and silos demolished; and

lNot less than 20 percent of company's shares to be offered on the Bermuda Stock Exchange.

"I think everyone can walk away happy from this," said Mr. Butterfield.

"We are delighted with what has been agreed and I think the landlord can be satisfied because we are moving to a site that frees up our old area for retail, and the tenant is happy and the community can be happy.

"This is the best deal for all concerned and now gives our staff the opportunity to know that there is a future.

"It has been a difficult period not knowing if we had a life, a future. But now we can all move forward."

Mr. Butterfield added that he hoped truck drivers and others "who handle our cement" would be the ones buying up the share issue and "owning a part of the industry".

Plant manager Stacy Simmons shared the delight of his boss.

"It has been tough at times for us all, not knowing what was going to happen," said Mr. Simmons, who was extremely vocal during last month's strike.

"But we are all delighted that this has finally been sorted out. The management have been very good with us, letting us know what is happening each step of the way ? and we have tried to pass that on to our customers.

"The industry is tremendously busy at the moment and has been for a long time. There is a lot of hard work to be done, we keep the place open ten to 12 hours a day, but we don't mind that now that we know our future is secure."