The Competition Promotion and Consumer Protection Committee of Uzbekistan has found Shangfeng Bridge of Friendship cement plant guilty of engaging in anti-competitive practices, including dumping and restricting the exchange competition. The committee has also forwarded documents concerned with cement sales under direct contracts to the Tax Committee for the assessment of profit tax and VAT.
The committee has imposed a fine of nearly UZS5bn (US$396,150) on the Shangfeng Bridge of Friendship cement plant located near Andijan. The fine follows an anti-dumping investigation initiated by the Committee, uncovering several regulatory violations.
This investigation revealed that from March to July, the joint venture sold 122,700t of cement through direct contracts, avoiding the mandatory exchange trading procedures. The company has also earned over UZS81m in unjustified profits by selling 2,700t of cement at prices which exceed the exchange quotations. The investigation also identified several instances of unfair competition with other cement suppliers.
The 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 US$20m and a replacement value of US$15m in imports. The Shangfeng Bridge of Friendship plant, of total investment US$250m, commenced operations in late April and has a production capacity of up to 6500tpd of cement.
