Displaying items by tag: GCW33

Kenya: A court has ordered the government to re-open the East Africa Portland Cement Co plant and provide security to ensure operations at the site. Justice Mohamed Warsame directed Police Commissioner Mathew Iteere, Rift Valley police boss and his Eastern Province counterpart to ensure adequate security.

The judge said the interest of the company must come first by safeguarding the interests of the public and shareholders. The judge warned that any politicians that interfered in the affairs of the company would be cited for contempt of court. He said that if the directors were not ready to reopen the company, he would 'fire' them and appoint an interim board.

"We must look at the bigger picture and how we can move this company forward and save it from being run down. The court cannot let it go on," he said.

The judge dismissed allegations that politicians incited workers and warned that any employee who failed to report to work should be sacked for absconding duty. He said that the ethnic direction the company was taking was wrong adding that, "we cannot address the grievances of the Kamba and Maasai, but the company has to operate."

Brazil: Votorantim Industrial, Brazil's largest diversified industrial conglomerate, intends to use proceeds from the sale of its stake in steelmaker Usiminas to expand its cement and mining output.

Chief executive, Raul Calfat, announced that the US$1.34bn raised by Techint's purchase of Votorantim's 13.5% voting stake in Usiminas had boosted the group's cash holdings to US$6.5bn. This high level of cash will allow the investment holding company to avoid borrowing at a time when financial markets remain shut for all but the most credit-worthy companies, said Calfat. It also gives the company room for funding heavy investment plans with its own cash.

Calfat said that the group's cement unit, Brazil's largest producer of the building material, would get one-third of the Usiminas stake sale proceeds. He said that the money would go towards the construction of four factories by 2013.