Cement market wondering about importers

The cement market in Romania is in turmoil again, induced by the release of an order of the Finance minister late last year that grants VAT exemption for imports of bitumen, cement, concrete or refractory mortar. The normative act draft originates from the Romanian Association of Construction Contractors (ARACO), the most powerful employers association in the constructions industry, which is still displeased with the prices operated by the three international cement producing groups, HeidelbergCement (Germany), Lafarge (France) and Holcim (Switzerland) on the domestic market. A report signed by three ministers of the Nastase Cabinet and backed by ARACO last summer was accusing the cement producers of agreements to fix the cement price, which the three denied. The order that is not very specific has stirred unrest on an about 250 million-euro market. ARACO says its has attained its goal of encouraging constructors to resort to imports, CarpatCement (the domestic producer held by HeidelbergCement) says it is all about refractory cement not produced in Romania, while another producer, Lafarge Romcim, asked the Finance Ministry, which had issued the order in question, for explanations. ZF