Displaying items by tag: Legal
West Bank case against CRH dismissed by court
07 September 2017Israel: A US$34bn lawsuit by Palestinian activists against a group of businesses including CRH has been dismissed by a court in Washington DC. The activists had tried to sue various groups with connections to Israel for allegedly ‘profiteering’ from the building of Jewish settlements in the West Bank, according to the Irish Independent newspaper. CRH was targeted due to its former co-ownership of Nesher, which produced cement used by the Israeli government in the West Bank. Before it sold its 25% stake in the Israeli cement producer in late 2015 CRH had received protests at its annual general meeting.
India: The Delhi High Court has rejected an appeal by Dalmia Bharat in a coal import deal with Glencore that went wrong. The cement producer will now be required to pay US$4.3m in damages and US$0.27m in interest, according to the DNA newspaper. Dalmia Cement, part of Dalmia Bharat Group, originally arranged a deal to import coal in multiple consignments. However it later refused to accept some of the shipments citing poor quality. Glencore then won damages at an arbitration tribunal that ruled that Dalmia had breached its contract.
Central Pollution Control Board orders three cement plants to cease operation in Telangana
23 June 2017India: The Central Pollution Control Board (CPCB) has ordered three cement plants to stop operation and issued show-cause notices to 11 other units in Telangana. Kakatiya Cements in Nalgonda, Mancherial Cements in Mancherial and the government owned Cement Corporation of India at Tandur have been issued with closure notices, according to the new Indian Express newspaper. Around 240 cement factories across the country have been sent either closure or show-cause notices.
The campaign follows an initiative asking selected industries to install online pollution monitoring systems which are to be connected to the CPCB as well as State Pollution Control Board servers to ensure real-time monitoring of pollution emission of industries. Cement plants have also been sent show-cause notices for failing to meet new emissions standards set by the CPCB.
Lithuania: Akmenės Cementas is fighting a legal battle over the repayment of a Euro40m loan it took out in 2007. The cement producer started negotiating in September 2016 with its creditors to have the repayment deferred by three years, according to the Baltic Business Daily. However the deal was blocked by the Baltijos Kredito Sprendimai, which inherited the portfolio of the bankrupt bank Snoras. On 15 June 2017 the Vilnius Regional Court temporarily banned Akmenės Cementas’ six creditors from taking loan repayments from its accounts with the exception of interest payments.
Akmenes Cementas built a new Euro110m production line in late 2014. The company used its own funds and the loan to finance the project.
Colombia: The Office of the Attorney General is preparing to present charges against three individuals involved in the sale of property in Maceo, Antioquia to Cemex for a new cement plant project. They are Edgar Ramirez Martinez, the former deputy director of Planning at Cemex, Camilo Gonzalez Tellez, the former legal director of Cemex Colombia and Eugenio Correa Diaz, the representative of CI Calizas, which sold the property to the cement producer, according to the El Tiempo newspaper.
The former employees of Cemex allegedly paid US$13.7m to Correa, despite being aware of the fact that the property, which formerly belonged to the deceased businessman Jose Aldemar Moncada, was in the process of being expropriated over unpaid taxes. It is also alleged that the funds never reached the accounts of CI Calizas, having been primarily used to pay off debts of Aldemar Moncada.
France: The French judiciary has launched an inquiry into the Syrian conduct of LafargeHolcim. Three judges, one dealing with anti-terrorism matters and two financial judges, will handle the probe that opened on 9 June 2017, according to Agence France Presse. The prosecutors will examine the ‘financing of a terrorist enterprise’ and whether the actions of the building materials producer had endangered lives.
LafargeHolcim admitted in March 2017 that its staff at a cement plant in Syria in 2013 and 2014 had struck deals with armed groups, following an investigation by the French newspaper La Monde in mid-2016. It is also alleged that Lafarge, one of the companies that merged to become LafargeHolcim in 2015, purchased oil in Syria in violation of international sanctions. The group’s chief executive officer Eric Olsen then resigned after the completion of a review into the affair in April 2017 despite not being found personally culpable or even aware of the situation. However, the review found that selected members of group management had been aware of the situation at the time.
Philippines: Two cement importers have asked the Regional Trial Court of Makati to issue a temporary restraining order against a Department of Trade and Industry (DTI) order restricting imports of cement. Fortem Cement and Cohaco Merchandising and Development allege that the Administrative Order 17-02 prevents imports of cement into the country, with the exception of importers operating integrated cement plants, according to the Manilla Bulletin newspaper. The importers say that the legislation will destroy their business. They also allege that the new rules violate anti-competition rules.
The DTI has defended its legislation, although it recognises the freedom of the importers to challenge it through the legal process. The government department says it issued the revised order to help safeguard the safety of consumers by requiring the strict conduct of standards compliance tests on cement imports. The order requires the application of the Philippine Standards licenses on foreign producers of cement imports, Import Commodity Clearance on cement imports and a minimum capitalisation level for importers to prevent smaller importers.
China: China Tianrui Group Cement says that Yang Yongzheng, a non-executive director, and Yu Chun Liang, a joint company secretary, have been detained by the police in Jinan. The police are holding the pair on alleged violations of criminal law in relation to ‘other duties which are outside the business of the company’ that took place on 8 April 2017. The company added that the pair have not been held as guilty or tried at a court of law.
China Tianrui Group Cement says that the incident was not connected to the company or its subsidies and that the it is not related to the performance of either person. It added that the ‘incident’ was unlikely to effect the business and operations of the group.
In early April 2017 the Jinan properties of its Shandong Shanshui, a subsidiary of China Tianrui Group Cement, was occupied by a former manager of the company and his associates. In the resulting debacle, representatives of Shanshui Cement were held against their will for over two hours by a hostile crowd until local police helped them to escape.
Indonesia: Semen Indonesia plans to start commercial operation of its Rembang cement plant in the first half of 2017. Rizkan Chandra, the chief executive, of the state-owned cement producer revealed the company’s plans, despite protests on environmental grounds by local residents, after a meeting with presidential staff in Jakarta, according to the Antara news agency. However the plant is waiting for environmental clearance that is expected to be released in April 2017. Previously a government minister said that the President Joko Widodo was expected to inaugurate the plant in mid-2017. However, in October 2016 the Supreme Court ruled in favour of the protesters and ordered Semen Indonesia to cease its activities.
China: China Shanshui Cement has obtained an injunction from the High Court in Hong Kong against its former management from posing as current managers, from entering the premises of, removing assets from or soliciting the employees of Shandong Shanshui. The injunction also prevents Mi Jingtian, Zhao Liping, Li Maohuan and Yu Yuchuan from each removing assets up to the value of US$20.5m from Hong Kong. The legal action follows an ‘illegal’ occupation in early April 2017 of the Jinan properties of its Shandong Shanshui subsidiary, during which representatives of Shanshui Cement were accosted by a hostile crowd.