Displaying items by tag: Legal
Rock Hard Cement says it will close for one month in Trinidad
05 January 2021Trinidad & Tobago: Rock Hard Cement says it will close during January 2021 in Trinidad due to alleged changes in government tariffs on imported cement. It hopes to reopen In February 2021, according to the Trinidad & Tobago Guardian newspaper. The company has published advertisements in local media warning of potential price rises of up to 80% in 2021. As well as changes to import costs the cement importer claims that the quantity of imported cement will be restricted to 75,000t/yr. The Ministry of Trade and Industry said it couldn’t comment on the matter as it is currently undergoing legal proceedings.
Judge issues arrest warrants for criminal network that stole cement from Cooperativa La Cruz Azul
22 December 2020Mexico: Police have received arrest warrants for three leaders of an alleged criminal network which stole 10,000t of cement from Cooperativa La Cruz Azul. The El Universal newspaper has reported that the accused stole the cement by running a parallel accounting system from within the company. They sold the stolen cement via the company Azul Concretos y Premezclados.
Jacob Omondi Guma reinstated as production manager at East African Portland Cement Company
09 December 2020Kenya: A court in Nairobi has reinstated Jacob Omondi Guma as a production manager for the East African Portland Cement Company (EAPCC). It follows the company’s decision to appoint Japheth Ombogo to the position, according to the Business Daily newspaper. The judge annulled the company’s decision on the grounds that it was marked by irregularities and may have been ‘malicious.’ The court ruled that Guma may stay in post until his three-year contract ends in September 2022 unless otherwise lawfully terminated. He was removed from the role in November 2019 after serving for just two months. The cement producer denies the allegations and says it removed him from the post due a lack of qualifications.
Bolivian court annuls Grupo Cementos de Chihuahua damages decision
13 November 2020Bolivia: A court has annulled a decision ordering Mexico-based Grupo Cementos de Chihuahua (GCC) to pay damages to Compania de Inversiones Mercantiles (CIMSA) for its alleged unlawful failure to grant it a right of preference before selling its 47% stake in Sociedad Boliviana de Cemento (SOBOCE). Global Newswire has reported that the company has announced that it will now take action in the US courts against an unfavourable ruling in October 2020.
Mawlamyine Cement suspends production due to limestone shortage
29 October 2020Myanmar: Thailand-based Siam Cement Group (SCG) and Pacific Link Cement Industries (PLCI) joint-venture Mawlamyine Cement has suspended production at its integrated cement plant in Kyaikmayaw, Mon State amidst a dispute between its owners. SCG says it has resorted to arbitration to resolve the matter and that PLCA has filed a lawsuit against it. In a statement SCG said that, “MCL continues to work with distributors and customers to alleviate the supply shortage due to the temporary suspension.”
18 injured in clash at Cemento Cruz Azul’s Oaxaca plant
16 October 2020Mexico: 18 people have been injured after representatives of Cemento Cruz Azul and police took control of the integrated 2.2Mt/yr Oaxaca plant in Lagunas. The La Jornada newspaper has reported that Cruz Azul’s directors José Antonio Marín and Víctor Manuel Velázquez entered the plant accompanied by security personnel in fulfilment of a court order before fighting broke out with cooperativist members of the organisation. Police arrested five members of the group, allegedly linked to a criminal organisation, while the Cruz Azul representatives successfully retook control of the plant.
Cooperativists restricted access to the plant in August 2020. The board of directors of Cruz Azul also asserted legal control of its Cementos y Concretos Nacionales (CYCNA) subsidiary cement plants in Puebla and Aguascalientes in September 2020.
LafargeHolcim faces US$270m compensation claim over violation of US sanctions in Cuba
12 October 2020Cuba/US: A court in Florida has accepted a request for damages worth US$270m from LafargeHolcim to over 20 parties from Cuba whose land was nationalised and subsequently had a cement plant built on it. The claim alleges that Switzerland-based Holderbank has held a stake in the partly-state owned Carlos Marx cement plant near Cienfuegos since 2001 via a deliberately “complex network of letterbox companies and transactions” in the Netherlands and Spain, according to the Tages Anzeiger newspaper. Holderbank later became Holcim and then LafargeHolcim.
The building materials producer’s alleged involvement may constitute a violation of the US embargo on trade with Cuba for companies active in the US. The claim has been aided by a clause in the US’s Cuban blockade law, activated by President Donald Trump, enabling Cubans to claim damages in US courts for expropriated property from private companies which profited from them.
Çimsa targets white cement
07 October 2020Çimsa and its parent company Sabancı Holding renewed their ambition to become a global leader in the global white cement market this week with the formation of Cimsa Sabanci Cement. The new subsidiary brings together most of Çimsa’s international white cement companies including Cimsa Americas Cement Manufacturing and Sales Corporation in the US, Cimsa Cement Sales North in Germany, Cimsa Cementos Espana in Spain and Cimsa Adriatico in Italy. Notably, the new entity does not include businesses in Romania and Russia or at home in Turkey. The move coincides with regulatory approval from the Comisión Nacional de los Mercados y la Competencia (CNMC) for Çimsa’s purchase of Cemex’s white cement business in Spain, including its integrated Buñol white cement plant, for around US$180m, which was first announced in March 2019.
The acquisition in Spain came with conditions though since Çimsa has now become the market leader in both bagged and bulk white cement locally, with a combined share of over 50% in the case of bulk white cement. Firstly, Çimsa has agreed to give Cementos Molins the rights to use its silo in Alicante along with a customer list over the last three years. Secondly, it has agreed to supply all its customers previously supplied from a silo in Seville from one in Motril instead for two years. The Motril terminal was purchased from Cemex. The idea here is to give Cementos Molins time to establish itself in the new market and for customers in the south of Spain to find alternative white cement suppliers if they want to. The latter condition was enough for the CNMC to approve the Cemex purchase in Spain. It was proposed on 24 September 2020 and then approved by the end of the month.
The wider picture is that Çimsa has been playing up its ambitions in white cement for a while now. At the time that the acquisition in Spain was announced, Tamer Saka, the president of Sabancı Holding Cement Group and chairman of Çimsa said, “With the integration of the Buñol white cement plant to our production and distribution networks, we will increase our white cement production capacity by 40%, translating into Çimsa becoming the world's largest white cement company.” This compares to Cementir’s self-declared world share of around 27% white cement production capacity, through its Aalborg White brand and others. Other recent developments at Çimsa include the commissioning of a 0.35Mt/yr white cement grinding plant in Houston, Texas by Cimsa Americas Cement Manufacturing and Sales Corporation in July 2019 with commercial sales starting later that year.
Back home in Turkey the domestic grey cement industry has faced difficulties in the last few years as the economy suffered, the capacity utilisation rate fell, competition increased in export markets and then coronavirus-related lockdowns caused further stress this year. By contrast the world white cement market has remained quite buoyant over the last decade, rising by around 7% year-on-year to 21Mt in 2018 and then remaining at a similar level in 2019.
HeidelbergCement memorably described white cement as a “niche product” when it left the scene in 2018 by selling its remaining shares in Lehigh White Cement in the US to Cementir. It has faced problems of its own this week with the decision by the European General Court (EGC) to uphold the European Commission’s (EC) previous ruling in 2017 to block a proposed takeover of Cemex Croatia by HeidelbergCement and Schwenk Zement. Funnily enough, that acquisition also revolved around a cement terminal. In this case the EC didn’t think that the offer by the potential buyers to grant access to a cement terminal in Metković in southern Croatia would be enough to assuage concerns about reduced competition following the transaction. Some you win, some you lose.
US court rules in favour of Compañía de Inversiones Mercantiles in Grupo Cementos de Chihuahua Sociedad Boliviana de Cemento sale case
07 October 2020US: A US federal court has upheld the ruling of a Colorado district court that Mexico-based Grupo Cementos de Chihuahua (GCC) must pay around US$36m compensation to Compañía de Inversiones Mercantiles (CIMSA) for failing to grant it a right of preference prior to GCC’s sale of its 47% stake in Sociedad Boliviana de Cemento (SOBOCE).
Peru-based Consorcio Cementero del Sur obtained 100% ownership of Bolivia-based SOBOCE following its acquisition of GCC’s stake in 2011.
European court rules against HeidelbergCement and Schwenk Zement acquisition of Cemex Croatia
06 October 2020Croatia: A European Union (EU) court has ruled in favour of the European Commission’s antitrust veto of Germany-based HeidelbergCement and Schwenk Zement’s 2017 acquisition agreement with Mexico-based Cemex for acquisition of its subsidiary Cemex Croatia. The court said that the deal was anti-competitive in that it had the potential to push up cement prices in Croatia, in spite of HeidlebergCement and Schwenk Zement’s offer to grant other cement suppliers access to a terminal.