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Holcim implicated in Cuban cement plant investment 04 June 2014
US/Cuba: A lawsuit in Spain has revealed documents indicating that Holcim may have invested in a cement plant in Cuba despite warnings the deal might violate US law because the plant sits on land seized from US citizens. The deal took place in 2000, when Holcim was known as Holderbank, but allegedly the ownership went through a string of companies in Spain, the Netherlands and Panama, according to documents filed in a lawsuit reported upon by the Miami Herald.
"Holderbank's investment in the Cienfuegos property clearly would constitute 'trafficking' in confiscated property under Title IV of Helms-Burton," wrote US lawyers hired to advise Holcim. Holcim denies that it owns a business or a stake in a business in Cuba.
The court documents are part of a lawsuit involving three Spanish firms. Firebrick SA and Acedos Trading allege that Inversiones Ibersuizas owes them more than US$2m from an investment in Cuba in 2000. The documents suggest that Ibersuizas created a Spanish firm, Las Pailas de Cemento, in 2000 that paid US$70m to Cuba for 50% of the joint venture, Cementos Cienfuegos plant. Holcim allegedly controlled the project through a Panama company, Windward Overseas. The deal subsequently began to break down in 2004.
Since 2004, the US Treasury Department's Office of Foreign Assets Control, which enforces the US embargo on Cuba, has fined foreign companies more than US$1.25bn for violating US laws and regulations.
Nigeria: Lafarge Cement WAPCO, Ashaka Cement and Unicem have started court action against the Standards Organisation of Nigeria (SON) regarding its plan to limit the application of 32.5 grade cement. The action follows a publication by SON restricting the application of 32.5R grade cement to plastering use only.
"We have instituted a suit against the SON over its recent pronouncement and plan to implement a new mandatory industrial standard order for cement manufacturing, distribution and usage in the country," said the three cement producers at a briefing in Lagos. The producers added that 32.5 grade cement is a widely used multi-purpose product and has 'never' been associated with building collapses.
India: The Himachal Pradesh state government has cancelled the 2Mt/yr cement plant project that was allotted to Jaiprakash Associates in Chamba District. The state cabinet cancelled the memorandum of understanding (MoU) for the project in February 2014. Another of Jaiprakash Associates' cement plants in Solan District is under investigation for overproduction.
The Chamba District cement plant was proposed at an estimated cost of US$136m near the Baroh-Sindh limestone deposits in Churah Tehsil, Chamba District. When the MoU was signed on 1 February 2007 it was claimed that the plant would provide direct employment to over 1000 people and indirect jobs to over 5000.
Finding that many cement companies have failed to set up their projects, the state cabinet in May 2013 decided to issue notices to Harish Cements, Lafarge India, India Cements and Jaiprakash Associates for failing to set up cement plants, despite the government having granted approvals. Following the cabinet decision the industries department issued show-cause notices to the companies. The industries department examined the replies and forwarded them to the state government. Finding the reply submitted by Jaiprakash Associates unsatisfactory, the cabinet cancelled the MoU in February 2014.
Industries minister Mukesh Agnihotri confirmed the cancellation of the proposed Jaiprakash Associates cement plant. Some other cement companies in Himachal Pradesh State are also under investigation due to reports of violations. The minister said that Jaiprakash Associates' cement plant in Solan District was allowed to produce 2.05Mt/yr of cement but that the company was actually producing 3.46Mt/yr.
"All these years, the company was making additional production without having the requisite permission," said Agnihotri. "When we started investigations the company approached the government seeking permission to regularise additional production." Agnihotri said that the order for an energy audit of Jaiprakash Associates has already been issued and that strict action would be initiated if violations are found on the part of the company.
Guatemala: Cementos Progreso will open a new cement plant, called San Gabriel, in San Juan Sacatepequez in the first quarter of 2017. The firm is investing US$700m on the 2.2Mt/yr capacity cement plant.
Saudi Arabia: Saudi cement producer City Cement Company has announced that it intends to invest US$29.7m to boost its cement grinding capacity to 265t/hr. The company said that it would use its own funds to finance the expansion. Construction will start on 1 June 2014, with completion expected in February 2016. Commercial production is expected in March 2016.