Global Cement News

Argentina/US: US law firm Howard G Smith has filed a class action lawsuit against Argentina’s Loma Negra on behalf of investors that purchased securities in the company’s initial public offering (IPO) in late 2017. The legal complaint alleges that the cement producer misled investors by: misrepresenting Loma Negra's exposure to a corruption scandal affecting its owner, Brazil’s InterCement; misrepresenting demand for Loma Negra’s products; misrepresenting the general state of the Argentine economy; and including references to known potential risks that had already happened.

Loma Negra launched its IPO in November 2017. Since then cement sales in Argentina have fallen year-on-year in the second half of 2018 and the general economy has floundered. The local competition body, the National Commission for Protection of Competition, also started an investigation into alleged collusion and coordinated behaviour in the cement industry in May 2018

Dominican Republic: The Dominican Association of Portland Cement Producers (ADOCEM) says that the local industry is on track for 4.1% year-on-year growth in cement consumption in 2018. This follows a decrease of 2% in 2017, according to the Acento newspaper. The association’s president Rayza Rodriguez forecast the growth was likely to continue in the short to medium term.

Paraguay: Industria Nacional del Cemento (INC) has launched a new masonry cement product ‘CAB 4.5.’ The new offering is intended for small scale applications. It will be sold in 40kg bags. However, local media has questioned whether the state-owned producer should be launching a new product during a cement shortage.

Fiji: The Department of Environment has issued a Stop Work Notice to Pacific Cement’s Lami plant due to complaints about dust emissions. The notice was issued following a visit by Sandeep Singh, the Director of Environment, to the unit, according to the Fiji Sun newspaper. The work orders are normally temporary to give industries time to implement mitigation measures.

Nouzab Fareed, the chief executive officer (CEO) of Pacific Cement’s parent company Fijian Holdings, acknowledged that the plant emitted dust ‘sometimes.’ However, he pointed out that the site imports over 0.1Mt/yr of clinker and that this comes from another plant.

Nigeria: Four workers of Dangote Cement have faced criminal charges at the Ogun State High Court by the Economic and Financial Crimes Commission (EFCC) for an alleged US$40,000 fraud. Adewale Dalmeida, Ibrahim Lawal, Afeez Olaniba and Lukman Adam were arraigned before the court on two counts of conspiracy and stealing, according to the Punch newspaper. The defendants allegedly diverted nine cement trucks, which were meant to be delivered to Togo. The EFCC alleges that the individuals used fake identity cards and truck number plates to carry out the misdemeanour. The defendants have pleaded not guilty to the charges. The case will now go to trial.