Displaying items by tag: Regulations

UK: The Competition and Markets Authority (CMA) has said that Breedon Group’s acquisition of a minority of Cemex UK’s ready-mix and aggregates operations “may lead to a substantial lessening of competition in the supply of ready-mixed concrete, non-specialist aggregates or asphalt in 15 local markets across the UK” in a letter to the group. The Herald newspaper has reported that the potentially affected markets are in localities where Breedon Group is already dominant, such as eastern Scotland and the East Midlands.

CMA senior director Colin Rafferty said, “As consumers source the majority of these materials locally, it’s vital to ensure that enough competition will remain at the local level so there’s enough choice and prices remain fair.” If it fails to respond to the CMA’s concerns by 2 September 2020, Breedon Group will face an in-depth Phase 2 investigation into the deal.

India: The Federation of Indian Chambers of Commerce and Industry (FICCI) has asked the government to restart home and road building to help cement producers. The Press Trust of India newspaper has reported that all construction work has stalled since 25 March 2020 due to the coronavirus lockdown. The FICCI believes that Indian cement demand is currently set to decline by 10-12% year-on-year. To relieve the sector, the FICCI urged the Indian government to lift the lockdown in metropolitan areas in order to allow the continuation of residential construction, which accounts for 60-65% of cement demand.

To protect domestic producers from any import dumping post-crisis, the FICCI has suggested that Indian cement sales should be subsidised. It also requested a ‘relaxation of environmental emission norms’ until mid-2022 ‘to save the industry from additional capex expenses.’

Mexico: Cemex has implemented more than 50 new safety protocols to minimise the risk of coronavirus spread in its cement, ready-mix concrete and aggregates operations. Cemex said that it recognised ‘the importance of the construction industry in supporting the maintenance and service of essential infrastructure required to face the pandemic and contribute to the economy,’ and would resume or continue all possible operations in line with the regulations of the countries in which it operates.

“The health and safety of its employees is the company’s number one priority,” said Cemex. “Among the protocols implemented are the company’s Personal Hygiene Protocol, Physical Distancing Protocol, Screening at Workplace Protocol, Cemex Truck Drivers Protocol, Workplace Cleaning Protocol, and Commuting To and From Work Protocol,” all developed in line with advice from national and international bodies such as the World Health Organization (WHO).
Cemex has leveraged its Cemex Go digital platform to limit physical contact and ‘protect employees, customers and suppliers.’

Nepal: The Nepalese government has implemented new cement regulations specifying the minimum compressive strength of 33MPa. The Republica newspaper has reported that this will follow the 1997 Cement Standard in restricting magnesia (MgO) content to 5% and insoluble residues to 2%. Two higher grades will designate cement with compressive strengths of 44MPa and 55MPa.

The government also introduced regulations governing the compression strength, insulation and density of autoclaved aerated concrete (AAC) blocks.

Panama: New technical regulations for cement composition and behavioural characteristics will enter force on 3 December 2019. All packaging must display the contents’ net weight, country of origin, cement type and production date. La Estrella has reported that the legislation gives enforcing power to the Ministry of Commerce and Industry’s Directorate General of Industrial Technology Standards (DGNTI), the Consumer Protection and Competition Defence Authority (ACODECO) and customs authorities.

UK: The Mayor of London visited Mexican-based Cemex’s Stepney readymix concrete plant to launch a road safety initiative along with Transport for London (TfL) and London Councils. The initiative consists of a ratings scheme of up to five stars for in-cabin vision for heavy goods vehicles (HGVs), with a ban on zero-star vehicles inside of Greater London. The regulation comes into effect in November 2020, before which time HGV operators may install a ‘Safe System’ consisting of sensors and noise alerts, in order to apply for a Safety Permit to keep their vehicles on the roads.

Philippines: The Department of Trade and Industry (DTI) has issued supplemental guidelines for the certification of cement. The regulations require producers or importers to follow conditions set by the Bureau of Philippine Standards (BPS), according to the Manila Times newspaper. The new rules require producers or importers to post a bond ahead of trading. Non-compliance with the certification rules can then lead to a forfeit of some or all of the bond. Not following the regulations can also lead to a producer or importer being prevented from supplying, distributing, selling or displaying their products. The new rules specify that an importer should apply for a statement of confirmation (SOC) on a per product, per shipment, per bill of lading basis prior to its distribution in the market.

India: UltraTech Cement's US$2.5bn proposed acquisition of Jaiprakash Associates' cement plants is expected to be completed by June 2017, according to UltraTech Cement.

"We have to ink definitive agreements and get permission from the High Courts. This will take time. The firm expects the agreement to be finalised in the next 12 - 15 months. Expect it to consummate by June 2017," said UltraTech Cement Chief Financial Officer Atul Daga.

Daga added that UltraTech is also looking at alternative routes in case proposed amendments to the Mines and Minerals (Development and Regulation) (MMDR) Act do not happen. In February 2016 the government took views from public, states and industry on amending the MMDR Act to include provisions allowing transfer of captive mines granted through procedures other than auction.

The transfer of captive mining leases, granted other than through auction, would allow banks and financial institutions to liquidate assets where a company or its captive mining lease is mortgaged. The move will allow mergers and acquisitions in the Indian domestic market, especially in the cement sector, in which several deals are currently on hold.

UltraTech Cement signed a Memorandum of Understanding to buy Jaiprakash Associates’ cement plants in late February 2016. Altogether, the cement plants have a total cement production capacity of 22.4Mt/yr.

Costa Rica: According to Central America Data, complaints have been made about the differences in the use by dates on cement bags misleading consumers. The cement bags in question were imported from China under the brand name Sinocem.

A label at the top of the sacks in question states that the packing date was 5 January 2015 and recommends its use by 5 July 2015. Another label on the same sack indicates that the product must be used within 45 calendar days following the date of packing, which would mean that the product has already expired.

The Consumers Association of Costa Rica has filed a complaint with the National Consumer Commission at the Ministry of Economy, Industry and Commerce over the imported Sinocem cement due to problems in product labelling that affect consumers.

"There is a deep concern that there is no clarity over use by dates for cement, which could even cause risk, because we do not know if the adhesives work well or even the exact date of the packing. With this cement being sold like this, consumers should be careful," said Gilberto Campos, vice president of the Consumer Association of Costa Rica.

Costa Rica: The government of Costa Rica is considering a measure to increase competition in the local cement market, for which accredited ratings agencies would define regulations on the consistency of cement to be sold in the country. This should enable the import of cement from more distant countries, such as China.

The current law prohibits the sale of cement when more than 45 days have passed since the production date, while the material should maintain a resistance of 28MPa. Economy Minister Welmer Ramos said that the existing regulations impede competition, while there are certified laboratories that are capable of demonstrating the quality of cement. However, there are fears that building works could be damaged if an adequate standard is not established.