daryo. Uz reported on August 27.
(Source: official website of the Commission for Competition Development and Consumer Rights Protection of Uzbekistan)
On July 11, the Commission for Competition Development and Consumer Rights Protection of Uzbekistan announced that it had launched an anti-dumping investigation on the Shangfeng Friendship Bridge in Andijan.
On August 27, the Committee on Competition Development and Consumer Rights Protection of Uzbekistan released the results of the investigation:
· From March to July 2024, 122,700 tons of cement were sold at Shangfeng Friendship Bridge, which should be traded and sold through exchanges. However, the actual situation is that it is sold in the form of a direct contract, which violates the requirements of the regulations.
· Illegal profits of 81.1 million sum from direct sales of 2,700 tons of cement at a price higher than average quoted price on the exchange.
· Unfair competition with other cement suppliers.
Based on the above, the Commission on Competition, Development and Consumer Protection of Uzbekistan decided to impose a fine of 4.9 billion sum. Especially for the unfair competition (dumping) of Shangfeng Friendship Bridge against its competitors and the restriction of competition in the course of exchange transactions.
In addition, the regulator has issued a mandatory directive requiring Shangfeng Friendship Bridge to eliminate the identified violations and take measures to prevent future occurrences.
In addition, relevant documents on the calculation of value-added tax (VAT) and income tax involved in the sale of highly liquid and monopolistic products (cement) by Shangfeng Friendship Bridge through direct contracts have been submitted to the tax authorities.
About Shangfeng Friendship Company:
In 2018, the foundation laying ceremony of the 3200TPD clinker cement production line of Shangfeng Friendship Bridge in Andijan, Uzbekistan was successfully held. According to the project introduction, after the completion of the project, it will become the largest and most advanced new dry cement production line in Andiyan Prefecture, with an annual output of 1.2 million tons of high-grade M500 and M400 ordinary cement. In January
2022, Anhui Conch Cement Co., Ltd. ( "Anhui Conch") signed an agreement with Gansu Shangfeng Cement Co., Ltd. The Parties, through their respective subsidiaries, increased the capital of the Ukrainian-Chinese joint venture Shangfeng Friendship Bridge Co., Ltd. ( "Shangfeng Friendship"). Shangfeng Friendship is mainly engaged in the production and sales of general cement and general cement clinker, and is only engaged in related business in Uzbekistan. Before the transaction, Shangfeng Cement and Uzbekistan Joydam Housing Construction and Decoration Co., Ltd. held 20% and 80% of the shares of Shangfeng Friendship Company respectively, and jointly controlled Shangfeng Friendship. After the transaction, Conch Cement and Shangfeng Cement will hold 51% and 29% of Shangfeng Friendship Company respectively, and jointly control Shangfeng Friendship. In January
2022, Shangfeng Cement announced that its subsidiary, Shangfeng Building Materials, intends to sign an investment cooperation agreement with Conch International Holdings, a wholly-owned subsidiary of Conch Cement, and Joydam, Uzbekistan, and plans to use its existing approval warrants, licenses and resources to cooperate with Shangfeng Friendship Bridge, a joint venture in Uzbekistan. The original plan to invest in the construction of a cement production line with a daily output of 3200 tons of clinker in Andijan, Uzbekistan was adjusted to invest in the construction of two new dry cement clinker production lines with a daily output of 5000 tons and 1 million tons of aggregate projects and put them into operation. The project was planned to be implemented by stages. In March
2023, Shangfeng Cement said in an institutional survey that the company had adjusted its plan and cooperated with Conch to build a new dry cement clinker production line with a daily output of 6500 tons and a supporting 9 MW waste heat power generation system. It is currently under construction and is expected to be put into operation in the second half of 2023. On April 28,
2024, the completion ceremony of the 6500t/d clinker production line was successfully held.
