Cemex dumping cement in Peru

Cemex dumping cement in Peru
19 October 2007

Peru’s cement producers on Thursday said a decision by the finance ministry to drop import duties on cement will hurt them and favor Mexico’s Cemex.
In published advertisements, the national cement producers association and a number of companies, including Cementos Lima called on President Alan Garcia to modify a decree ordering the import fee reductions.

Peru’s cement companies said the reduction in duties comes at a time when Cemex has entered into Peru with imported cement, reportedly from its plant in the Dominican Republic by dumping at low prices and selling below cost into the local market - currently undergoing something of a mini-boom as construction activities improve.

This dumping manoeuvre also coincides with earlier news that Cementos Lima has already announced plans to set up a 600,000tpa plant in Arizona, under a subsidiary operation, Drake Cement.

Cemex, clearly has its own market ambitions in Arizona, just across the border from Mexico, as evidenced by its more recent decision (September 07) to build a 1.7Mta plant in the same state not too far from the proposed Drake Cement plant.

It seems to be just one coincidence after another!
Published under Cement News