LafargeHolcim files HC plea to counter limestone crushing stop order
Local businesses complain the cement manufacturer imports limestone as raw material, then crushes and sells that illegally as aggregate products
LafargeHolcim Cement has filed a plea with the High Court challenging an industries ministry's letter directing the company to stop making aggregate products from crushed limestone.
The ministry earlier received a complaint from the Baboshai-Sramik Oikya Parishad – a platform of businessmen and workers in the limestone business – that the multinational cement manufacturer was crushing limestone and selling aggregate production in the open market illegally.
LafargeHolcim imports limestone as raw material for manufacturing cement, paying less tax than local businesses importing limestone for the manufacture of aggregate products. These latter businesses complained to the ministry of industries that their higher taxes, and LafargeHolcim's lower tax on limestone, makes for unfair competition.
Acting on the complaint, on 16 September the industries ministry sent their aforementioned directive letter to the multinational cement manufacturer, which is listed on the country's capital market.
In responding to a query, the cement manufacturer updated the Dhaka Stock Exchange (DSE) about the company's latest move filing a plea in court against the government order.
On 9 January, the company commenced commercial production of clear-size graded aggregate products in Chhatak, Sunamganj.
The annual production capacity of the new crushing unit is 1.2 million tons and the company has invested Tk40 crore to build the new plant.
LafargeHolcim shares closed at Tk92.40 each on Thursday after a steady and sustained surge on the DSE.
In the January-June period of 2021, its profits jumped to Tk215.21 crore from Tk84.29 crore for the same period in the previous year.
The company's crushing unit generated Tk72 crore in revenues and Tk35.03 crore in operating profits in the January-June period this year.
In its half-yearly financial statement, the company said profits rose due to increased cement sales and new aggregate business.