Uzbekistan's Committee for the Development of Competition and Protection of Consumer Rights has imposed a fine of nearly UZS 5bn ($394,632) on the Shangfeng Bridge of Friendship cement plant located near Andijan. The fine follows an anti-dumping investigation initiated by the Committee, which uncovered several regulatory violations.
The investigation revealed that from March to July, the joint venture sold 122,700 tonnes of cement through direct contracts, circumventing the mandatory exchange trading procedures. Additionally, the company earned over UZS 81mn ($6,393) in unjustified profits by selling 2,700 tonnes of cement at prices exceeding the exchange quotations. The investigation also identified instances of unfair competition with other cement suppliers.
The regional commission of the Competition Committee found Shangfeng Bridge of Friendship guilty of engaging in anti-competitive practices, including dumping and restricting exchange competition. In response, the joint venture has been fined UZS 4.9bn ($394,632) and instructed to cease these violations. Furthermore, the Committee has forwarded documents related to cement sales under direct contracts to the Tax Committee for the assessment of profit tax and VAT.
The cement plant, a joint venture between Uzbekistan and China, was established following an agreement signed in October 2023. The initial plan involved constructing two plants with an annual export capacity of $20mn and a replacement value of $15mn in imports. The Shangfeng Bridge of Friendship plant, with a total investment of $250mn, commenced operations in late April and has a production capacity of up to 6,500 tonnes of cement per day.
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