01 September 2016
Mexico: Cemex has announced that Mexico’s Secretariat of Environment and Natural Resources has granted the company an Honourable Mention for the 2016 National Award of Ecological Merit. This award is the country’s most important environmental recognition and was presented to CEMEX for its conservation and restoration efforts under the company’s El Carmen Conservation Program.
Cemex earned this recognition in the Business Category for its contribution to the restoration, conservation, and increased population of endangered species such as the bighorn sheep, the pronghorn antelope, and the golden eagle. Thanks to El Carmen’s preservation initiatives, other species with considerably increased populations include the desert mule deer, the white-tailed deer, and the black bear — the largest population of this species of bear in Mexico.
“We are very proud to receive this recognition. It encourages us to continue our work to preserve the extraordinary biodiversity of our planet,” said Fernando A. Gonzalez, CEO of Cemex. “Our 15 years of continuous commitment to El Carmen underscores the key role that sustainability plays in our company’s strategy.”
Cemex’s El Carmen Conservation Program celebrates 15 years of work conserving the unique biodiversity of the border region within the states of Coahuila, Mexico, and Texas, USA. Comprising over 140,000 hectares, the El Carmen ecological reserve is one of the most biodiversity rich areas in North America and one of the five great wilderness ecosystems in the world.
Competition Commission of India fines 11 cement companies US$1bn for alleged cartelisation 01 September 2016
India: The Competition Commission of India (CCI) has imposed a penalty of more than Rs67bn (US$1bn) on 11 cement companies for alleged cartelisation. The companies affected are UltraTech, Binani, Ramco, Jaiprakash Associates, JK Cement, Lafarge, India Cements, ACL, ACC, Century, and Shree Cement, besides the Indian Cement Manufacturers' Association (CMA). The order issued by the anti-trust regulator held the companies and the CMA responsible for 'acting in concert in fixing prices of cement.' The companies and the CMA allegedly shared details relating to prices, capacity utilisation, production and dispatch, which led to restricted production and supplies in the market hurting consumers and the Indian economy, the order said. Further, the CCI also found the cement companies to be acting in concert in fixing prices of cement. A final order has been passed by CCI, pursuant to the directions issued by the Competition Appellate Tribunal (CAT) remanding the matter back, while setting aside the original order of the fair trade regulator, which had had also imposed fine on cement companies.
Penalties of US$171m on ACC, US$173m on ACL, US$24.9m on Binani, US$40.9m on Century, US$27.9m on India Cements, US$19.1m on JK Cement, US$73.1m on Lafarge, US$38.5m on Ramco, US$175.3m on UltraTech and US$197.5m on Jaiprakash Associates were imposed by CCI. In addition, a penalty of US$109,000 was slapped on the CMA.Penalising the companies, the CCI said the actions of the companies and the CMA are not only detrimental to the interests of consumers but also to the whole economy, as cement is a critical input in construction and infrastructure industry, and vital to economic development. Through a separate order, the regulator has slapped US$59.2m fine on Shree Cement for unfair businesses practices.
The CAT had, in late 2015, revoked CCI's order, imposing a combined penalty of US$943m on cement companies for allegedly forming a price cartel. The tribunal quashed the commission's order after observing that Ashok Chawla, then CCI chairperson, was party to the order, despite not being present during hearings. The tribunal also allowed the cement companies to withdraw the US$94m deposited by them in compliance of its interim order. The interim order, in May 2013, had stayed the penalty but asked the companies to deposit 10 per cent of its pending disposal of their appeal. In June 2012, the commission had fined ACC, Ambuja Cement, UltraTech Cement and Jaiprakash Associates a little over US$149m each for forming a cartel. The other companies fined included Madras Cements, Century Cement, Binani Cement, Lafarge India, JK Cement, India Cements and Grasim Cements (now merged with UltraTech). The CMA was also a party in this case and it was fined a token amount.
Competition watchdog CCI said interactions between the trade body and the cement companies were not confined to promoting the interest of the industry. "Such interactions have been found to have transgressed the limits in sharing of information and extended to discussions on cost, prices, production and capacities...," the CCI order said. The case was filed by Builders Association of India against the cement companies and CMA alleging collusion to fix prices.