Displaying items by tag: Cemex Colombia
Colombia: The Council of State has confirmed a fine to Cemex imposed by the Superintendent of Industry and Commerce (SIC) for fixing the price of cement. The ruling found that an agreement between Cemex Colombia, Holcim Colombia and Cementos Argos distorted the price, supply and sales of Ordinary Portland Cement in the second half of 2005. In particular the tribunal found that the way in which Argos gave information about Cementos Andino’s involvement in the national market to Cemex and Holcim was be anti-competitive.
Colombia: Ricardo Naya, the president of Cemex Colombia, says that he expects that the company's new US$356m cement plant at Maceo in Antioquia will go into operation at the end of 2018. At present the company is trying to guarantee with the Regional Autonomous Corporation of Antioquia environmental agency that it will have the necessary permits to operate the plant at full capacity, according to the La Republica newspaper.
In 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed an internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights and benefits of the tax free zone for the project. The US Department of Justice has also investigated the project.
Cemex Colombia is also fighting a fine by the Superintendent of Industry and Commerce (SIC) for alleged market collusion in the cement business. It agreed to pay the fine but has appealed to the Dispute Tribunal.
Colombia: The Superintendent of Industry and Commerce (SIC) has confirmed a US$73.5m fine issued against six top executives and cement companies for alleged market collusion. SIC says that Cementos Argos, Cemex and Holcim failed to provide an economically reasonable explanation for similar pricing, according to the El Colombiano newspaper. Cemex has accepted the decision and not filed an appeal. Cementos Argos and Holcim will take the case to the Dispute Tribunal.
Cemex pays fine to Colombian competition body
08 January 2018Colombia: Cemex Colombia has paid a US$25.3m fine to the Superintendent of Industry and Commerce (SIC). The penalty follows an investigation into price fixing by Cemex, Cementos Argos, and Holcim and six senior managers, according to the El Economista newspaper. However Cemex plans to lodge an appeal with the Contentious Administrative Court to reverse the fine.
The fine covers behaviour by the companies between January 2010 and December 2012. SIC’s investigation discovered that collusion between the cement producers artificially increased the price of cement by 30% despite inflation being 9% during the period.
Colombia: The Superintendent of Industry and Commerce (SIC) has fined Cementos Argos, Cemex and Holcim and six senior managers US$68m for fixing the price of Ordinary Portland Cement. The fine covers behaviour by the companies between January 2010 and December 2012. SIC’s investigation discovered that collusion between the cement producers artificially increased the price of cement by 30% despite inflation being 9% during the period.
Cementos Argos responded to the sanction by saying that it rejected the fine and decision by SIC. Following an earlier statement in October 2017 it once again criticised SIC’s methods. According to Reuters, both Holcim and Cemex disagreed with the finding and they said they would take legal action against it.
Colombian Superintendent of Industry and Commerce reports evidence of price collusion
17 October 2017Colombia: The Superintendent of Industry and Commerce (SIC) says that it has found evidence of price collusion from 2010 to 2012 between Cementos Argos, Holcim and Cemex. A report by SIC alleges that the three companies raised the price of Ordinary Portland Cement (OPC) in a coordinated manner, according to the El Espectador newspaper. The producers have been given a time to respond to the allegations and they could face fines of up to US$8m each by the end of 2017.
However, the cement producers have denied the allegations and criticised SIC’s methods. In a response, Cementos Argos described SIC’s analysis of cement prices over a 36-month period as ‘ not appropriate.’ It also pointed out that the regulator had assumed a stable market share between competitors and that its own share had changed between 2007 and 2017.
Colombia: Cemex has received a subpoena from the US Securities and Exchange Commission (SEC) seeking information to determine whether there have been any violations of the US Foreign Corrupt Practices Act (FCPA) in relation to a new cement plant being built by Cemex Colombia at Maceo in Antioquia.
In late September 2016 Cemex fired several senior staff members in relation to the Maceo project and its subsidiary’s chief executive resigned. This followed at internal audit and investigation into payments worth around US$20.5m made to a non-governmental third party in connection with the acquisition of the land, mining rights, and benefits of the tax free zone for the project. Cemex referred the situation to the Colombian Attorney General at the same time. The group has also confirmed that it maintains an anti-bribery policy applicable to all of its employees and subsidiaries.s
Cemex makes management changes in Cemex LatAm and Cemex Colombia following Maceo scandal
06 October 2016Colombia: Cemex has made organisational changes at Cemex LatAm and Cemex Colombia following senior management dismissals and the resignation of the unit’s chief executive officer in connection to investigations into a land deal in Maceo. The cement producer said the changes would ‘enhance the level of leadership, administration and corporate governance practices.’
The board of directors of Cemex LatAm has decided to split the roles of chairman of the board of directors of Cemex LatAm, chief executive officer of Cemex LatAm and director of Cemex Colombia. Additionally, a new chairman of the board of directors of Cemex LatAm, director of Cemex Colombia, and director of planning of Cemex LatAm have been appointed. The new appointments are effective immediately.
Juan Pablo San Agustin has been appointed chairman of the board of directors of Cemex LatAm. He will also remain as executive vice president of strategic planning and new business development of Cemex. He is a member of Cemex’s executive committee.
Jaime Muguiro Domínguez has been confirmed as chief executive officer of Cemex LatAm. He will also remain as president of Cemex South, Central America and the Caribbean and is also a member of Cemex’s executive committee.
Ricardo Naya Barba has been appointed director of Cemex Colombia.
Francisco Aguilera Mendoza has been appointed director of planning of Cemex LatAm, and will be appointed director of planning of Cemex Colombia in the coming days.
Cemex added that all of the newly appointed executives have ‘significant’ international operating management experience and on average have each close to 20 years of working experience within Cemex.
Cemex brings forward Caracolito cement plant expansion
07 April 2015Colombia: The corporate affairs vice president of Cemex in Colombia, Daniel Suarez, has said that the company is bringing forward the expansion of its Caracolito plant, which is responsible for 30% of Colombia's cement supply.
The project includes the expansion of the existing quarry with an additional 110,000m2 of land, a complete reconstruction of the kilns and the replacement of the air treatment filters. Cemex will also open a new plant in the northeast of Antioquia.
Cemex's Colombian sales have exceeded 1Mt/month in recent months, driven by projects like '4G motorways' and housing schemes. Cemex does not export any cement from Colombia. 65% of its revenues in the country come from individuals who buy cement to either build new rooms for their homes or build a home by themselves. 35% is sold to construction firms.
Colombia: Wärtsilä, a supplier of power plant and ship power solutions and services, has renewed its asset management agreement with Cemex Colombia. The agreement was signed during summer 2014 and it is valid for five years. It is a continuation of an earlier asset management agreement that was signed in 1998.
With this new agreement, Wärtsilä continues to operate and maintain the power plant at Cemex Colombia's cement plant. The agreement covers day-to-day operation of the power plant and the natural gas station (city gate), preventive and predictive maintenance services, management of parts logistics and technical support services. This agreement is a long-term operational partnership with a common goal to ensure maximised lifetime, guaranteed performance and predictable life cycle costs for the power plant.
"We have worked with Wärtsilä for 15 years," said Jairo Guerrero, energy director from Cemex Colombia. "During these years, Wärtsilä has showed excellent performance in ensuring the reliability and availability of our cement factory in Ibagué. Wärtsilä has also introduced innovative upgrades that will further improve the performance and reliability of our power plant. We are happy to continue our long-term partnership with them."
Cemex Colombia's cement plant is powered by five Wärtsilä 34SG engines, with a total capacity of 25MW. The plant is located near Ibagué, a municipality in the Department of Tolima.