Displaying items by tag: Colombia

Colombia: The Superintendency of Industry and Commerce (SIC), Colombia's competition watchdog, has rejected a request made by Productora de Cementos to register its brand Cemento Patriota under Nice Classification. The initially approved submission was contested by Cementos Argos, according to La Republica newspaper. It argued that Cementos Patriota would infringe on its Cementos Uno A, Concretos Uno A and Agregados Uno A labels, because it reproduced the distinctive letter 'A' and number one of the accompanying graphic shared by all three brands. SIC ruled in favour of Cementos Argos, arguing that a side-by-side comparison shows visual similarities.

Colombia: Cemex has received a subpoena from the US Securities and Exchange Commission (SEC) seeking information to determine whether there have been any violations of the US Foreign Corrupt Practices Act (FCPA) in relation to a new cement plant being built by Cemex Colombia at Maceo in Antioquia.

In late September 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed at internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights, and benefits of the tax free zone for the project. Cemex referred the situation to the Colombian Attorney General at the same time. The group has also confirmed that it maintains an anti-bribery policy applicable to all of its employees and subsidiaries.s

Colombia: Cemex Latam, the Latin American subsidiary of Cemex, intends to enter dialogue with the Regional Autonomous Corporation of Antioquia (Corantioquia) to revoke its environmental permit for Maceo cement plant project. Corantioquia has requested that the permit from Central de Mezclas, a subsidiary of CHL, be returned to the CI Calizas y Minerales, according to the El Colombiano newspaper. The government agency has removed the clearance on procedural grounds and over the mining rights in the area.

Colombia: Cementos Argos’ sales revenue in Colombia have fallen by 8.3% to US$629m for the first nine months of 2016 from US$686m in the same period in 2015. Its earnings before interest, taxation, depreciation and amortisation (EBITDA) fell by 12.9% to US$171m and its cement sales volumes fell by 17.9% to 3.78Mt. It blamed this on a fall in demand for bulk cement in the country caused by a delay in infrastructure projects.

“The US, Honduras and Panama continue to drive the company’s results and offer great opportunities for growth, offsetting the slowdown in demand we faced in the Colombian market as a result of the delay in the start of the construction of the 4G projects during the second half of the year,” said Juan Esteban Calle, chief executive officer of Cementos Argos.

Overall the cement producer reported that its sales revenue rose by 13.1% to US$2.05bn, that its EBITDA rose by 13.8% to US$396m but that its cement sales volumes fell by 1.4% to 10.5Mt.

Colombia: Holcim Colombia is planning to build a 0.5Mt/yr grinding plant at Buga in the Valle del Cauca department. The project will have an investment of US$32m, according to the New Century newspaper. The site for the new plant was chosen for both local demand and its proximity to the port of Buenaventura. Construction work on the unit will start immediately and the plant will be launched in the first quarter of 2018. It is expected to create up to 180 jobs when operational.

Colombia: The broker named in an internal probe by Cemex Latam has defended his involvement with relation to the purchase of land and mining rights for a cement plant project in Maceo, Antioquia in comments to the La Republica newspaper. Eugenio Correa, representing Calizas y Minerales, says that he has only received US$6.85m from Cemex despite claims by Cemex that he is holding US$20.5m in funds for the project. He adds that Cemex conducted at least 25 visits from its engineers, lawyers and accountants at the Maceo site between July 2011 and December 2015 keeping it up to date on the project’s progress.

Correa says that he originally signed a memorandum of understanding with Cemex for the sale of 340 hectares, economic free zone and the mining rights for US$22.20m in August 2012. He adds that the contract was extended in April 2016 to June 2019. In late September 2016 Cemex dismissed several senior staff members in relation to the project and the subsidiary’s chief executive resigned.

Colombia: Cemex has made organisational changes at Cemex LatAm and Cemex Colombia following senior management dismissals and the resignation of the unit’s chief executive officer in connection to investigations into a land deal in Maceo. The cement producer said the changes would ‘enhance the level of leadership, administration and corporate governance practices.’

The board of directors of Cemex LatAm has decided to split the roles of chairman of the board of directors of Cemex LatAm, chief executive officer of Cemex LatAm and director of Cemex Colombia. Additionally, a new chairman of the board of directors of Cemex LatAm, director of Cemex Colombia, and director of planning of Cemex LatAm have been appointed. The new appointments are effective immediately.

Juan Pablo San Agustin has been appointed chairman of the board of directors of Cemex LatAm. He will also remain as executive vice president of strategic planning and new business development of Cemex. He is a member of Cemex’s executive committee.

Jaime Muguiro Domínguez has been confirmed as chief executive officer of Cemex LatAm. He will also remain as president of Cemex South, Central America and the Caribbean and is also a member of Cemex’s executive committee.

Ricardo Naya Barba has been appointed director of Cemex Colombia.

Francisco Aguilera Mendoza has been appointed director of planning of Cemex LatAm, and will be appointed director of planning of Cemex Colombia in the coming days.

Cemex added that all of the newly appointed executives have ‘significant’ international operating management experience and on average have each close to 20 years of working experience within Cemex.

Colombia: Cemex Latam has secured an interim contract with the government for its cement plant project in Maceo, Antioquia. The temporary solution will last until the end of an investigation into the irregular acquisition of the land, tax-free area and mining rights for the factory by Cemex Latam Holdings in 2012, according to the El Espectador newspaper. The company also intends to negotiate an extension of the lease contract, as per its original plans, in order to commence operation of the plant in early 2017.

An internal probe into the land deal found that irregular payments of US$20.5m had been made to Eugenio Diaz Correa, an individual connected to the deal. Cemex has fired Edgar Ramirez, vice president of planning, and Camilo Gonzalez, head of legal department, as part of the investigation and Carlos Jacks, the company's regional director, resigned. Cemex Latam has hired an external audit team and legal representatives in the case that was passed on to the Attorney General's Office of Colombia.

Colombia: Cemex Latam has dismissed its Vice President for Planning and the General Attorney for its Latin American and Colombian units following an investigation into US$20m payments related to a cement plant being built in Maceo, Antioquia Province, Colombia. In addition, the unit’s chief executive officer has resigned in connection to the probe, according to Bloomberg.

The South American subsidiary of Cemex found payments of about US$20m had been made to a non-government individual for land and mining rights, and benefits related to a tax-free area where the Maceo cement plant is being constructed, according to a regulatory filing released by the Colombian financial regulator. Cemex has informed the Colombian prosecutors of the results of its internal probe.

Colombia: Procemcol has opened its 0.24Mt/yr Productora de Cemento SAS cement plant in Sogamoso. The project had an investment of US$10.2m and it will create 65 jobs, according to the El Tiempo newspaper. Sogamoso also has two other cement plants, owned by Cementos Argos and Cementos del Oriente, which are upgrading their equipment.