The Competition Council has completed its investigation of the cement market and imposed fines on all cement manufacturers. Holcim (Romania) S.A. was fined EUR 9.472 million.
The Competition Council has advanced a number of assertions with regard to market and price agreements that are not tenable. It is true, however, that individual mandatory investments in plant rehabilitation stipulated in connection with the acquisition of the Alesd cement plant in 1999 were not satisfied in time. In addition, a selling-price system with individual customer discounts was introduced which the investigating authority views as detrimental to competition.
Although the grounds for the imposition of the fine are contestable both from an economic and a legal standpoint, Holcim (Romania) S.A. will not appeal against the competition authority's decision. Holcim (Romania) S.A. acts in strict compliance with the competition rules and aims to participate in the country's further development and expansion by providing high quality building materials.
Including its aggregates and ready-mixed concrete activities, Holcim (România) S.A. achieved sales of EUR 130 million in 2004. Since 1997 Holcim has made investments in excess of EUR 300 million - approximately half of which has been channeled into plant modernization and environmental protection.
Holcim (Romania) S.A. is the Romanian subsidiary of Holcim Group Ltd, one of the world's leading suppliers of cement, as well as aggregates (gravel and sand), concrete and construction-related services. One of the top players in the world construction materials industry, the Group is based in Switzerland and has majority and minority interests in more than 70 countries on all continents. Holcim employs more than 48,000 people operating 130 cement plants and grinding stations and over 750 ready-mixed concrete plants throughout the world. Holcim is also one of the first international players in the construction industry to have invested in Eastern Europe after 1989.
Holcim (Romania) S.A. currently operates 3 cement plants, in Turda, Campulung and Alesd, 13 ready-mixed concrete plants (8 of which have been built based on the environment friendly concept) and 4 aggregates plants. Holcim (Romania) S.A. currently has approximately 1,300 employees.