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Sherpa and European Centre for Constitutional and Human Rights take legal action against Lafarge over operations in Syria 16 November 2016
France: Sherpa and the ECCHR (European Centre for Constitutional and Human Rights), as well as 11 complainants who are former Syrian employees of Lafarge, are taking legal action against Lafarge and its subsidiary Lafarge Cement Syria (LCS) for its actions in Syria. The non-government organisations have accused the cement producer of conducting business with the Islamic State of Iraq and Syria (ISIS), a terrorist group, via its Jalabiya cement plant.
“The Lafarge case highlights once again how multinationals doing business in conflict zones can directly fuel armed conflicts and contribute to grave human rights violations committed therein. Companies like Lafarge must be held accountable,” said Miriam Saage-Maaß, Vice Legal Director at ECCHR.
Sherpa and the ECCHR have accused LCS of entering into arrangements with ISIS in order to maintain production, by paying for passes issued by the jihadist organisation and buying raw materials necessary for cement production such as oil and pozzolana in areas under ISIS’s control. They have also accused Lafarge of reckless endangerment given that the plant continued to operate in the conflict zone. LCS repatriated its expatriate staff in 2012 but it kept its Syrian employees working at the site. Subsequently, when the plant was attacked, Sherpa and the ECCHR say that the local employees were forced to escape on their own.
PPC reports progress of cement plant projects in Democratic Republic of Congo and Ethiopia 16 November 2016
South Africa: PPC has reported update on projects in the Democratic Republic of Congo (DRC) and Ethiopia. In the DRC it said that engineering, procurement, and construction (EPC) contract work from Sinoma is complete and overall the cement plant it is building is 90% complete. Power infrastructure is being built at present and hot commissioning at the site will start once this is in place. Sales of cement are scheduled to start in February 2017.
In Ethiopia the cement producer has planned to commission its 1.4Mt/yr Habesha plant in the second quarter of 2017. Plant construction is reported as ‘progressing well’ with overall project progress above 80%, civil construction 94% complete, mechanical erection at 66% and 95% of equipment manufactured and delivered to site. The project has a budget of US$180m.
LafargeHolcim increases stake in Ambuja Cement and ACC 16 November 2016
India: LafargeHolcim has increased its shareholding in Ambuja Cement and ACC via its subsidiary Holderind Investments. It now owns 63% of Ambuja Cement’s shares and 4.5% of ACC’s shares. The group will pay for the additional stakes in Indian Rupees. The impact on LafargeHolcim’s net debt will be Euro302m. It described India as one of LafargeHolcim’s key markets with solid long-term fundamentals and a clear potential for further improvement in business performance.
Federal Trade Commission approves request by HeidelbergCement and Italcementi to sell Martinsburg cement plant 16 November 2016
US: The Federal Trade Commission (FTC) has approved an application from HeidelbergCement and Italcementi to sell the Essroc cement plant in Martinsburg, West Virginia, eight cement terminals in the mid-Atlantic region and related assets to Argos USA, a subsidiary of Cementos Argos. The divestiture was required by the FTC’s August 2016 final order settling charges that the US$4.2bn merger of HeidelbergCement and Italcementi would be likely to harm competition in five regional markets for cement in the US. The Commission vote to approve the divestiture was 3-0.
Jens Wegmann stands down as CEO of Thyssenkrupp Industrial Solutions
Written by Global Cement staff
16 November 2016
Germany: Jens Michael Wegmann is standing down as CEO of Thyssenkrupp’s Industrial Solutions division with immediate effect and leaving the company. Wegmann accepted a golden bracelet for his wife from a Pakistani business partner, according to Reuters.
“I made a mistake which I greatly regret and I am now paying the consequences. I realise that my conduct in my dealings with a sales partner was not in line with Thyssenkrupp’s values and that I can no longer credibly drive the necessary changes at Industrial solutions. For this reason I am standing down as CEO of Thyssenkrupp Industrial Solutions – irrespective of legal issues and the findings of the on-going internal investigation. I would like to wish all employees the very best for the future and every success in the continuing implementation of the transformation,” said Wegmann in a statement.
Stefan Gesing, chief financial officer of Industrial Solutions, will assume Jens Michael Wegmann’s duties and serve as chair of the business area board on an acting basis. The group will decide on a permanent successor in a structured process.