Recently, the price per one ton of Portland cement SEM II 40 Mpa produced by Garadagh Cement J.S.C. was reduced by AzM 10,000 (US$2) following a resolution of the management of the company, Azer-press learned from Garadagh Cement. The management stated that the distributors must now build their relations with the concerned outlets. Otherwise, Garadagh Cement will put an end to co-operation with the distributors who fail to comply with its requirements.
The new prices of the products of Garadagh Cement selling from the plant are as follows:
- SEM II M30 cement in sacks - AzM 245,000 for distributors (US$50) and AzM 280,000 (US$57) for retail sale;
- SEM II M40 cement in sacks - AzM 280,000 (US$57) for distributors and AzM 310,000 (US$63) for retail sale;
- SEM II M40 in bulk - AzM 270,000 (US$56) for distributors and for retail sale;
- SEM I M50 in sacks - AzM 365,800 (US$74) for distributors and for retail sale;
The new basic price of the products of Garadagh Cement selling in Baku are only set for retail sales:
- SEM II M30 cement in sacks - AzM 280,000 (US$57)
- SEM II M40 cement in sacks - AzM 310,000 (US$63)
All the prices are per tonne with the VAT included.
The Azerbaijani government has criticised the company of late for artificial increase of prices in the domestic market and accused it in violating anti-monopoly legislation. As a result, the executive board of the Swiss company made a decision on replacement of the management of Garadagh Sement and the appointment a new General Director. More recently, possibly as a result of such actions, cement prices in the domestic market have dropped by 25-30 per cent Holcim holds 86 per cent of shares of Garadagh Sement and has invested US$11m in the development o f the enterprise over the past three years. Production levels are planned to rise to 1.4Mta.