Displaying items by tag: Fine

Pakistan: The All Pakistan Cement Manufacturers Association (APCMA) has appealed to the Competition Appellate Tribunal to annul a US$22.6m penalty imposed by the Competition Commission of Pakistan (CCP) over alleged collusion and price fixing.

APCMA’s counsel argued that the sector operates competitively with price variation, and that the CCP failed to properly analyse the industry geography. He said a 2003 quota-sharing agreement had expired before the CCP ruling and challenged office raids as unfounded.

The tribunal has adjourned the case to 22 May 2025, when defence lawyers will present arguments. The CCP previously fined the APCMA and its member companies in 2009 after alleging market collusion.

Brazil: Votorantim Cimentos grew its revenue and earnings in 2024 but its net income dropped significantly due to interest rate volatility. It noted ‘positive performance’ in its Europe and Asia region and a stable market in Brazil. It attributed its mounting earnings to its balanced portfolio, revenue in Europe and Asia, operational efficiency, reduced costs and new business.

The group’s net revenue grew by 3% year-on-year to US$4.69bn in 2024 from US$4.53bn in 2023. However, revenue fell slightly in local currencies due to negative exchange effects, particularly in North America. Cement sales volumes rose by 1% to 35.4Mt from 34.9Mt. Adjusted earnings before interest, taxation, depreciation and amortisation (EBITDA) increased by 16% to US$1.14bn from US$0.99bn. Earnings rose in all regions except for Latin America due to a ‘challenging’ market in Uruguay and lower prices in Bolivia. Despite this, its adjusted net income dropped by 17% to US$383m from US$461m.

“We ended the year with record-high operating results, supported by our geographic, product and business diversification, in line with our strategic mandate,” said Osvaldo Ayres, the group’s global CEO. The company invested over US$550m in 2024 towards decarbonisation, competitiveness and new businesses. A further US$880m investment plan in Brazil to 2028 was announced in early 2024. Ongoing projects include upgrades supporting higher thermal substitution rates at the Xambioá plant in Tocantins state and the Salto de Pirapora plant in São Paulo. A new 1Mt/yr cement grinding unit is being built at the Salto de Pirapora site. Construction of this project is scheduled for completion in the second-half of 2025. A new 1Mt/yr cement grinding unit was also announced at the Edealina plant in Goiás. This project is expected to be completed in the first half of 2026.

Votorantim also revealed that it paid around US$190m to the Administrative Council for Economic Defense (CADE) at the end of 2024 in connection with an agreement to end all administrative and judicial litigation. It said “We definitively resolved all pending disputes with CADE. We did not acknowledge, at any time, having committed any unlawful act or engaged in any anticompetitive behaviour.”

Brazil: The Administrative Council for Economic Defence (CADE) has convicted two individuals for operating a cartel in the Brazilian cement sector and ordered them to pay fines of US$1.75m.

The investigation began in 2016, stemming from a wider probe into a Brazilian cement sector cartel. The individuals exchanged emails and attended meetings to allocate market share and manipulate public procurement prices to restrict competition and entry of new competitors in the market.

Iraq: Iraq’s largest cement plant in Kirkuk has resumed operations after a shutdown in November 2024 due to environmental non-compliance and an issued fine of US$343,000. Upgrades include a new dust control system and pollution monitoring equipment. Residents of nearby Lailan have previously protested against the plant, stating that the pollution caused adverse health effects and poisoned local crops, according to Intellinews. Following inspections, the factory now reportedly meets relevant pollutant standards.

Romania: The Competition Council has fined Holcim Romania, Romcim and Heidelberg Materials Romania a total of €43.7m for allegedly coordinating pricing policies during the period of 2017–2018, according to Economedia Romania. Holcim Romania was fined €18.2m, Romcim €13.3m and Heidelberg Materials €12.2m.

The Council found that the companies exchanged non-public commercial information regarding prices, discounts and payment terms through customers, which was used to establish commercial strategies regarding pricing policy. Bogdan Chirițoiu, president of the Competition Council said that “The behaviour led to reduced competition, which generated an increase in cement prices compared to neighbouring countries.”

Holcim has since responded, saying that it will appeal the fine imposed and calling the decision ‘unfounded’ in a recent press release.  

Bogdan Dobre, CEO of Holcim Romania & Market Head Moldova, said “Holcim Romania rejects the conclusions of the investigation report and declares that it has acted and continues to act in accordance with the competition rules. We consider the decision to be unfounded, therefore Holcim Romania will exercise its right of defense before the courts and will challenge the sanction issued by the Romanian competition authority.”

Namibia: The Namibian Competition Commission (NaCC) has imposed a US$269m fine on two companies for completing a merger without prior approval. The acquisition of Hong Xiang Holdings’ shares by Wang Zhongke from Fan Qingmei led to the companies being fined after an investigation found that the merger would create a monopoly in the cement market. NaCC spokesperson Dina Gowases stated that the merger failed to meet the notification requirements under the Competition Act, aimed at safeguarding competitive markets crucial for the construction industry and the national economy. The settlement also requires the companies to implement a competition law compliance programme in Namibia.

India: The government’s Income Tax Department fined Shree Cement US$481m on 5 January 2024. The fine is for the company’s use of falsified bills in relation to a non-existent waste management plant to claim US$1.02bn-worth of tax deductions between April 2014 and March 2023.

The Economic Times newspaper, breaking the story, reported that neither Shree Cement nor the Income Tax Department has yet issued a statement.

India: UltraTech Cement says that it has received demand orders from two local revenue authorities for issues relating to its past tax payments. The Financial Express Online newspaper has reported that the producer must pay a total of US$86,600, including interest and fines. Office of the Deputy Commissioner of State Tax, Bhavnagar, Gujarat, demanded US$56,400 due to an allegedly ineligible input tax credit. Meanwhile, the Office of the Assistant Commissioner of Central Goods and Service Tax Division II, Punjab, demanded US$30,200 due to input service distributor credit not reflected in its statement for the 2018 financial year.

UltraTech Cement plans to challenge the orders, to wit the company said that it has a ‘good case on merit’ to present before appellate authorities.

Canada: A provincial offences court has fined Heidelberg Materials Canada US$142,000 for ‘failing to take every precaution reasonable in circumstances under which three contractors were injured at its Picton cement plant. The workers were reportedly injured in a flash fire while replacing the plant’s jet air blower, after company engineers mistakenly overrode digital signals on both open valves between the gas supply and the area where the repair was taking place.

Bolivia: The Bolivian Attorney General’s Office says that is open to meeting representatives of Sociedad Boliviana de Cemento (SOBOCE) in order to negotiate a ‘better arrangement’ following Bolivia’s nationalisation of a stake in SOBOCE subsidiary Fábrica Nacional de Cementos (FANCESA) by supreme decree in 2010. SOBOCE owes FANCESA US$108m in damages for unfair competition since that time.

SOBOCE said "SOBOCE, together with its shareholders of Grupo Gloria del Peru, will continue to resort to judicial and/or arbitration channels (national or international) for the recognition of their rights. We believe in justice and in the legitimate right that we have, since the Bolivian Constitution guarantees the payment of compensation in case of expropriation."