Lafarge Jordan attributes losses to unfair competition

Lafarge Jordan attributes losses to unfair competition
11 February 2011

Jordan Lafarge Cement Factories Company on Wednesday said the losses it incurred last year, which stood at JD953,000 (US$1.36m) compared to net profits of JD45.7m generated in 2009, is due to the "unfair" competition in the cement industry in Jordan.

In a statement, the company attributed the decline in sales to the fact that new companies have entered the local market as these firms import the clinker from countries that subsidise the material, the Jordan News Agency, Petra, reported.

Earlier this year, the company called on the government to impose tariffs on imported cement and clinker.

In a memo sent to the Ministry of Industry and Trade, Lafarge explained that the Kingdom’s imports of the clinker substance, manufactured in countries that subsidise fuel for cement factories, make competition in the local market unequal and threaten the future of cement industry in the country.

The company highlighted that the losses have incurred despite its efforts to reduce the costs and maximise cash flow through initiatives and programmes that failed in generating profits.
Published under Cement News