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India: The Competition Commission of India (CCI) has found seven cement companies guilty of bid rigging and cartelisation and imposed a total fine of nearly US$30m on them. The accused companies are Shree Cement, UltraTech Cement, Jaiprakash Associates, JK Cement, Ambuja Cements, ACC and JK Lakshmi Cement, according to the Times of India. The fines are based on 0.3% of each company’s average turnover for three financial years. Each company has also been ordered to cease and desist such behaviour.
The ruling relates to a tender floated by a Haryana state procurement agency in 2012 that the CCI started investigating in 2014. Evidence cited in the CCI’s order includes text messages and phone calls made between officials of the companies.
UltraTech Cement and Shree Cement have issued statements saying that they will appeal against the fine.
France: The French government has confirmed that it is investigating Lafarge over alleged illegal activities in Syria following European Union (EU) sanctions that were imposed in 2012. The Paris prosecutor's office said that a probe was opened in October 2016 after the French Ministry of Economy and Finance filed a complaint against the cement producer, according to the Associated Press. LafargeHolcim, the company formed from a merger between Lafarge and Holcim in 2015, said that it was, “in the process of establishing the facts concerning our activities in Syria.”
A group led by the non-government organisation (NGO) Sherpa filed a complaint in Paris against Lafarge for allegedly ‘financing terrorism’ in November 2016. The complaint accused it of maintaining commercial relations with the Islamic State group in Syria in 2013 and 2014 so it could continue operating a cement plant in the country.
At the time, Lafarge denied ‘financing so-called terrorist groups.’ The company said it had launched a ‘thorough and independent investigation’ into the allegations to determine whether its internal code of conduct had been properly followed and if procedures needed to be adapted. It said it would implement ‘any remediation measures required.’
Brazilian cement body says 2017 may be worst year ever 19 January 2017
Brazil: The National Union of Cement Industry (SNIC) has said that 2017 may be the worst year on record for the local cement industry. Domestic sales of cement fell by 11.7% year-on-year to 57.2Mt in 2016. SNIC’s new president Paulo Camillo Penna described the situation as the worst in the industry’s history. He added that following capacity utilisation rates of 70% in 2015 and 57% in 2016 that he expects the rate to fall below 50% in 2017. SNIC forecasts that sales of cement will contract by 5 – 7% in 2017.
Hima Cement to launch US$40m grinding plant in Tororo 19 January 2017
Uganda: Hima Cement is set to launch its new grinding plant in Tororo. The 1Mt/yr plant at Nyakesi, Rubongi cost US$40m, according to the Ugandan Observer newspaper. The new unit is planned to meet demand for local infrastructure projects and for regional markets.
Funding released for PPC to build new line at Slurry plant 19 January 2017
South Africa: PPC has completed the components of its 2008 broad-based black economic empowerment (B-BBEE) transaction, releasing US$74m in funding in mid-December 2016. Strategic black partners and community service groups subscribed for 15.6 million shares as part of earlier agreements. The funding will be used to reduce company debts and pay for a new production line at its Slurry cement plant in Lichtenburg.