Displaying items by tag: lobbying

South Africa: Morag Evans, the chief executive officer (CEO) of Databuild, says that local cement manufacturers are being ‘severely’ undermined by cheap imports from countries such as China, Vietnam and Pakistan. She adds that the government’s failure to stem the influx of these products could have a severe detrimental impact on an already struggling industry.

“In an industry already in the grips of a severe downturn owing to the decline in infrastructure development, not only are these imports negatively impacting the competitiveness of our local manufacturers, but independent studies have shown the quality of these international products to be inferior,” said Evans.

She also cited quality concerns with imported cement mentioning a study conducted by local manufacturer PPC. It found that, from 14 products tested from 10 different producers, most were either over or underweight and were also of inconsistent quality.

Evans has supported the Concrete Institute’s lobbying for a 45% import tariff on cement imports. However, she acknowledges that such a move could raise the price of cement and increase inflation in the general economy.

Databuild provides information about the construction industry in South Africa.

India: The Confederation of Indian Industry (CII) has lobbied the government in its Pre-Budget Memorandum 2020-21 over customs duties. The body is suggesting a reduction on the customs duty on packaging for use in bagging cement to 5% from 10%. There is currently no import tax on cement and duties of 5% and below on various clinker constituents.

Brazil: Brazil has reported a growth in annual sales volumes for the first time since 2014. Producers sold 54.5Mt of cement – up by 3.5% from 52.8Mt in 2018 and exceeding SNIC president Paulo Camillo Penna’s January 2019 forecast of 3.0% growth. Penna has predicted a 3.6% increase to 56.5Mt in 2020. Valor newspaper has reported that Penna bases his assumption on favourable interest rates and low inflation of the Brazilian real as well as the government’s implementation of anticipated industrial policies favourable to production.

South Africa: Research carried out by Beton-Lab on the instigation off PPC has revealed a widespread flouting of cement quality regulations, with the majority of samples overweight or underweight and of inconsistent quality. Beton-Lab tested 14 products from 10 different producers. Cape Times has suggested that the results are due to the addition of fly ash and slag to finished cement as a common practice amongst producers.

In August 2019, PPC and other South African producers lobbied the government International Trade Administration Commission for a tightening of cement standards in response to a perceived compromise on quality by importers, whose 4.6% stake in the market grew by 293% year-on-year in July 2019.

Belgium: The European Cement Association Cembureau has joined 92 other European associations in lobbying the European Council to prioritise research, development and innovation in its Multiannual Financial Framework for the Institutions for 2021 to 2027. It called on the Council to raise the Horizon Europe project’s budget to at least Euro120bn, with a minimum of 60% dedicated to the ‘Global Challenges and European Industrial Competitiveness’ pillar. Cembureau emphasised the importance that Horizon Europe should have the money to realise its promises of boosting growth, securing technological leadership and scaling up 21^st century technologies ‘at this pivotal time.’

Spain: The Association of Cement Manufacturers of Andalusia (AFCA) has lobbied the Regional Government of Andalusia to invest more in infrastructure projects. At a meeting the cement producers asked the local government to support the sector, according to Europa Press. The region’s consumption of cement grew by 8.5% year-on-year to 2.5Mt in 2018 but it is still at a historically low level. Exports fell by 30% to 1.6Mt in 2018 due to rising costs associated with the European Union Emissions Trading Scheme and high local electricity costs.

Taiwan: Asia Cement’s union has taken out advertisements in major local newspapers protesting against a ruling by the Taipei High Administrative Court blocking its right to operate a cement quarry located in the Taroko National Park. It says that the cement producer applied for the permit extension in line with the Mining Act in 2016, according to the Taipei Times newspaper. It added that the court’s decision could negatively affect industrial operations, labour rights as well as the government’s credibility for boosting the economy. Environmental groups have called on the company to negotiate with local people living near the quarry.

Nigeria: Oyebamiji Dauda, the chairman of the Lagos State Bricklayers’ Association, has urged the government to cut the price of cement. He wants it to make cement manufacturing more competitive by allowing more producers to operate in the market, according to the News Agency of Nigeria. He added that the ‘high’ cost of cement was negatively affecting building construction. Dauda’s ideas to ease the price of cement include government subsidy, tax breaks for local producers of building materials and further penalties for imported products.

Ghana: The Cement Manufacturers Association of Ghana (CMAG) is lobbying the government against a recent fumigation levy of US$0.50/t on imported clinker by the Ministry of Health. At a recent meeting the association discussed this tax and others negatively affected the cement sector, according to the Business and Financial Times newspaper. It is also unhappy about more longstanding charges, including a VAT restructuring levy of 5%, and a 2% special tax as well as a new 11% electricity tariff and a proposed increase in the cost of a certification licence from the Ghana Standards Authority and impending. CMAG is also complaining to the Customs Division of the Ghana Revenue Authority about imports.

Bangladesh: The Bangladesh Cement Manufacturers Association (BCMA) says a new import tax on raw materials and a distribution levy will increase the price of cement and place a burden on the construction industry. The new duties will add 8% to the existing 15% of value-added tax (VAT) already liable on raw materials, according to the Daily Sun newspaper. The association is lobbying against the government’s proposed budget for 2019 – 2020. It has described the new budget as business friendly but not favourable for the cement sector. Any additional taxes are also expected to worsen the effect of growing international prices of raw materials.