Uruguay: ANCAP official speaks out about Turkish imports

Artigas González of the Federación ANCAP (FANCAP) and member of the Portland commission of the ANCAP workers guild, said Cementos Charrúa (Cimsa) is currently importing bagged cement from Turkey and repackaging it under a Uruguayan brand for marketing, according to El Observador.

"It comes in the form of dumping (below its cost of production) and at a price that is unfair competition," he said.

FANCAP has made a formal proposal to the Ministry of Industry, Energy and Mining to review the tariff that is currently in force for cement imports because it is very low and is practically on a par with that of Mercosur countries. 

Gonzalez explained that "there is no way" that cement coming from Turkey to Uruguay be profitable for the company that acquires it.

The trade unionist said that the conduct of Cementos Charrúa not only affects ANCAP's Portland cement production but also that of its private competitor Cementos Artigas.

The Cimsa plant is located in the vicinity of the El Convoy stream, on the way to the Quebrada de los Cuervos, in Treinta y Tres. It was originally designed for a production of about 500,000tpa of clinker but can be increased to about 850,000tpa.

ANCAP struggles to be competitive

ANCAP is waiting for ANCAP's new management to make a determination about the future of its cement business. The subsidiary, Cementos del Plata, reported a loss of US$27m last year. The current Board of Directors of the oil company has already taken some measures, such as the removal of the former manager of Cementos del Plata, which is now covered by the former director of the entity, Fernando Acuña. 

Mr Gonzalez said that cement production is reactivating slowly, but there remain outstanding decisions about cost-saving investments. At the Paysandú plant, a new kiln is ready to be installed but requires a US$128m investment. "Today we recognise that the State does not have that amount," admitted the ANCAP leader.

It is expected that the new management of the Portland Division will have a new operating scheme for this business unit by the end of the year. "We have expectations and a letter of credit is opened, but there is also uncertainty about the closings announcements (from ANCAP subsidiaries)," he acknowledged.