Manufacturing News South Africa

Pakistani exports could pressure SA cement prices

Low quality cement products imported from Pakistan could make it difficult to price related products sold in SA‚ Thierry Legrand‚ the South African CEO of multinational cement and concrete manufacturer‚ Lafarge‚ said on Wednesday, 25 July 2012.

It concerned him that some competitor sellers of cement‚ who imported the building material and did not manufacture it‚ were buying cases which were not as large as their boxes demarcated and the cement itself was not as strong as standards required.

"Some sellers have not complied with the National Regulator of Compulsory Standards‚ yet they have import licences. We are looking at approaching the International Trade Administration Commission of South Africa‚ to intervene in the market‚ but no decision has been made yet. We are discussing the various issues‚" he said.

La Farge‚ a French company and the world number one manufacturer of cement‚ has expanded its operations in the Middle East and Africa over the last five years. Legrand was moved into the position of country manager after a severe cost cutting procedure worldwide. India's Aditya Birla Group had been reported at the end of last year to be considering a proposal from Lafarge to buy Lafarge's South African operation. But Legrand said on Wednesday that Lafarge had faith in its SA operation making profits and that rumours of a sell off‚ suggested cement‚ concrete and related products‚ made up a market that was competitive and attractive to new entrants.

Three businesses importing Lucky Cement from Pakistan last year had their operations shut down following allegations that Lucky Cement was sub par.

Source: I-Net Bridge

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