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UNFAIR COMPETITION IN CEMENT MARKET
By Anar Jabrayilli Azernews Staff Writer
General director of the "Garadagh Cement" joint stock company Mr. David Stone told a news conference in Baku last week that according to official data from the State Customs Committee, 280,000 tons of cement was imported last year. Researches, however, show that around 580,000 tons were marketed, which means that approximately 300,000 tons of cement was smuggled to the country.
This leads to unfair competition and hurts the interests of both "Garadagh Cement" and the government.
According to Mr. Stone, as a result the company has to lower prices. Estimates by "Garadagh Cement" specialists put Azerbaijan's needs for cement at 1.1-1.2 million tons a year, a third of which is produced by the JSC. The quality of the smuggled cement products does not meet the standard. Touching upon the allegedly Iranian M-500 cement, he said the plant in Iranian city of Ardabil does not produce such cement, he said.
Illegal cement
There are currently 4 cement mills in Azerbaijan, which inundate the domestic market with low quality and uncertified cement, according to the head of the "Garadagh Cement" joint stock company's laboratory Nizami Mammadov.
Mr. Mammadov indicated that the proportion of clicker in such cement is very low, because the technology of its production requires a high temperature. Therefore, the small mills replace it with stone dust, limestone, etc. According to Mr. Mammadov, the content of clicker in the cement brought in from Russia and Iran is also low.
He went on to say that despite numerous appeals the company has made to the government and the state standardization committee, no measures are being taken and the illegally made cement is still in the market.
Investment program impeded
Swiss Holsim, winner of the investment tender for privatization of "Garadagh Cement" open joint stock company, is facing difficulties in fulfilling the competition requirements, according to Mr. David Stone.
He said under the investment program Holsim is to invest $23 million in the enterprise over a time period of 5 years. Mr. Stone indicated that in order for the 5-year program to be successfully implemented, the Azerbaijan government has to create a suitable environment. The company will implement the program it has undertaken, but there are no guarantees that any further investment will be made in the plan afterwards. Mr. Stone then described the business environment in Azerbaijan as extremely bad, saying that rampant smuggling and high energy prices make it very difficult to stay in business.
New brand
"Garadagh Cement" JSC plans to launch production of a new cement brand for brickwork and plastering. According to Mr. Stone, the brand will be cheaper but of as good quality as other ones.
The company specializes in producing construction cement and is going to be able to meet 90% of the country's needs for cement pretty soon, Mr. Stone said.
Holsim to partake in Armenian cement plant privatization
Swiss transnational Holsim, which holds 86% interest stake in "Garadagh Cement" joint stock company, intends to take part in the tender for privatization of the cement plant in Armenia. According to the Holsim spokesman in Azerbaijan David Stone, this will not affect the company's business in Azerbaijan. Operating over 140 cement plants throughout the world, including the Middle East, Balkans and South Caucasus, Holsim has never faced any problems, he said.
ABSHERON POULTRY PUT ON INVESTMENT COMPETITION
The department for privatization of state property under the Ministry of Economic Development has announced an investment competition for privatization of "Absheron Reproductive Poultry" joint stock company.
Bidders are required to forward their advanced investment programs for production of hens, eggs and meat and improving employment rate in the region.
Interested bidders are to transfer 5% of the total investment volume to the account of the JSC within 30 days after the conclusion of a sales and purchase agreement, transfer at least AZM1.2 billion to the state budget, and submit a minimum of 40,000 privatization vouchers.
Evaluation of the tender bids is expected to take place on October 12.
BAKU EUROPEAN TOBACCO TRANSFERS OVER AZM94 BILLION TO STATE BUDGET
Since being established in February 2000, Baku European Tobacco manufactured 6.4 billion filter cigarettes totaling AZM299.4 billion. A source from the company told AssA-Irada told Tuesday that $8.54 million worth of cigarettes were exported to Central Asia and CIS countries, as well as the free economic zone in Turkey, Mongolia, Pakistan, UAE, etc.
The company has recently started producingits 23rd brand, white-filtered Astra Light.
MINISTRY OF FUEL AND ENERGY REGULATIONS APPROVED
President Aliyev has decreed to approve the regulations of the Ministry of Fuel and Energy, whereby the Ministry is to become a central executive body responsible for enforcing the state’s energy policy. The ministry is expected to establish the country's fuel and energy balance, regulate work of relevant state-owned enterprises, participate in the development of strategic investment programs, and license all activities in the field.
The Ministry is also expected to draft, negotiate and sign agreements on the development of national hydrocarbon resources and monitor their execution.
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© 1998-2003 Azernews. All Rights Reserved.
Issue No.N37 (219), 2001
Lord Johnston due in BakuGarabagh Armenians' visit not a successNationBusinessOil & gas news
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