UAE firms told to comply with new price structure

UAE firms told to comply with new price structure
Published: 01 February 2010

Action could be initiated against cement factories that fail to comply with the new price structure finalised by the Cement Manufacturers Association, a senior official has warned.

The new price structure for cement sales in the UAE comes into effect from tomorrow. According to Abdullah Mohammed Al Sayah, President of Cement Factories and Producers Group, all cement plants in the UAE will follow the new price structure.

"All UAE-based cement producers have signed a memorandum of understanding stating that cement will be sold as per the agreed price structure. So it is expected that they will follow it. However some sort of action could be taken against companies that violate the agreement," said Al Sayah without elaborating on what the punitive action would be.

While a tonne of cement in Abu Dhabi will be priced at Dh250, in Dubai it will be sold at Dh240 per tonne. In the Northern Emirates, where most factories are located, cement will be priced at Dh220 per tonne.

"If factories wanted to sell for less they would not have been party to the MOU. Although no legal action can be taken against factories found violating the rules, some sort of penalty measure will be imposed," added Al Sayah.

Meanwhile cement factories told Emirates Business yesterday that they would implement the new price structure from February 1.

A senior official at Star Cement yesterday said: "We all will be following what the association or the group has finalised. It will bring about some sort of regulation in prices as far as cement is concerned."