Displaying items by tag: Legal

Barbados: The Caribbean Court Of Justice has ruled in favour of Trinidad Cement on maintaining a 60% tariff on imports of cement. The subsidiary of Mexico’s Cemex and its own subsidiary Arawak Cement complained that import company Rock Hard Cement was only being taxed by 5%, according to the Nation News newspaper. However, the case will continue as the ruling only refers to hydraulic cement. It is unclear what classification of cement that Rock Hard Cement is importing.

Saudi Cement: City Cement’s Al Madina Cement subsidiary says it has reached a final settlement with China’s Sinoma International about the construction of a second production line. The parties have agreed an 8% discount on the total cost of the project worth around US$11m. Trial operation on the second line at the plant was originally announced in late 2014.

Nigeria: Two employees of Dangote Cement accused of stealing cement have changed their pleas to guilty at the Ogun State High Court. The defendants allegedly diverted nine cement trucks, bound for Togo, using fake identity cards and truck number plates, according to the Business Day newspaper. The suspects are accused of stealing 800 bags of cement with a value of over US$40,000. The case continues.

Egypt: South Valley Cement says it is in a dispute with China’s Sinoma CDI over an upgrade to its Beni Suef plant. The cement producer alleges that Sinoma has not met its contractual obligations on the project to build new mills. South Valley Cement says that Sinoma has liquidated letters of guarantee worth nearly US$2m, left the construction site and started arbitration proceedings. South Valley Cement is now considering its legal options. The status of the upgrade project remains unknown.

India: UltraTech Cement has renamed its Binani Cement subsidiary UltraTech Nathdwara Cement. The leading Indian cement producer finally acquired Binani Cement in late November 2018 when the Supreme Court supported the National Company Law Appellate Tribunal’s (NCLAT) approval of its bid for Binani Cement following a legal fight with a consortium led by Dalmia Bharat group.

Binani Cement’s production assets include a 4.85Mt/yr integrated plant at Nathdwara and a 1.4Mt/yr grinding plant at Neem ka Thana, both in Rajasthan. The company also operates plants in China and the UAE. UltraTech Cement’s acquisition will increase its production capacity in the north of the country to around 24Mt/yr, increase its access to limestone reserves and offer it synergies in logistics and procurement.

Pakistan: The Sindh High Court has ordered the provincial government to take possession of around 1100 acres of land of Rohri Cement’s plant while a dispute concerning the lease of the land is decided. The Sindh government has argued that the lease of land was illegal was the cement producer’s representatives have asked the court to grant a grace period, according to the Dawn newspaper. The case continues.

Pakistan: Bestway Cement has promoted its environmental credentials following the Supreme Court’s mandated investigation into water usage by cement companies near the Katas Raj Temples in 2018. The cement producer says that all of its cement plants are ISO 14001:2004 Environment Management Systems certified. Specifically on the issue of water conservation, it has installed air-cooled condenser systems at two of its plants at Chakwal and Kallar Kahar respectively and it has built rain-harvesting ponds. In total the company has spent around US$14m on water conservation measures. Altogether it says that it has achieved 80% and 88% reductions in consumption of ground water for industrial use, respectively, at the two plants.

Other environmental measures the company has made include installing waste heat recovery (WHR) units at all four of its cement plants. Its total WHR capacity is 45.5MW giving it 28% of its total power needs. The company is recognised by the United Nations Framework Convention on Climate Change (UNFCCC) under its Clean Development Mechanism (CDM) Program for its initiative to reduce carbon emissions/footprint. It has also implemented tree plantation at its plants and surrounding areas, it uses drip irrigation and sewerage waste management and its head office in Islamabad has been certified as a Green Office by the World Wide Fund for Nature (WWF).

Ireland: Irish Cement has been fined Euro4000 for dust emissions in December 2017. The subsidiary of CRH pleaded guilty at Limerick District Court to breaking the terms of the industrial licence at its plant in Limerick in early December 2017, according to the Irish Times newspaper. The cement producer reportedly unsuccessfully attempted to clear a build-up of dust in the plant’s kiln. A ‘significant’ amount of dust polluted the local neighbourhood subsequently leading to 21 complaints to the Environment Protection Agency. The cement producer was fined previously in mid-2018 for dust emissions occurred in April and May 2017.

Argentina/US: US law firm Howard G Smith has filed a class action lawsuit against Argentina’s Loma Negra on behalf of investors that purchased securities in the company’s initial public offering (IPO) in late 2017. The legal complaint alleges that the cement producer misled investors by: misrepresenting Loma Negra's exposure to a corruption scandal affecting its owner, Brazil’s InterCement; misrepresenting demand for Loma Negra’s products; misrepresenting the general state of the Argentine economy; and including references to known potential risks that had already happened.

Loma Negra launched its IPO in November 2017. Since then cement sales in Argentina have fallen year-on-year in the second half of 2018 and the general economy has floundered. The local competition body, the National Commission for Protection of Competition, also started an investigation into alleged collusion and coordinated behaviour in the cement industry in May 2018

Nigeria: Four workers of Dangote Cement have faced criminal charges at the Ogun State High Court by the Economic and Financial Crimes Commission (EFCC) for an alleged US$40,000 fraud. Adewale Dalmeida, Ibrahim Lawal, Afeez Olaniba and Lukman Adam were arraigned before the court on two counts of conspiracy and stealing, according to the Punch newspaper. The defendants allegedly diverted nine cement trucks, which were meant to be delivered to Togo. The EFCC alleges that the individuals used fake identity cards and truck number plates to carry out the misdemeanour. The defendants have pleaded not guilty to the charges. The case will now go to trial.