Protection Commission confirms Vassiliko cement deal

The Commission for the Protection of Competition concluded that the agreement between Vassiliko Cement Works and the Cyprus Cement Company Pcl (CCC), is not against competition but it remains subject to certain conditions and guarantees undertaken by the two parties.

The CPC came to the decision despite opposing views from the Attorney General’s office on the matter as it rules that if the two parties undertake to meet all the obligations set out in the previous agreement, then the deal can proceed.

The two parties have given the following binding terms: Freeze of cement prices for the next 2 years (up to 31 March 2009); The partial coverage of any subsequent increases in production cost of following the 1st April 2009 until the full operation of the new production unit at the Vassiliko area; Reduce their combined market share in the production of ready-mix concrete in Paphos; VCW and CCC would not be allowed to import cement, except in the case where demand is in excess of supply and no alternative solution is available; No restrictions should be imposed to the usage of the Vassiliko port by third parties and no tension should be created in the event that the port at the Vassiliko area is leased to a third party to import cement; The continuous supply of cement to existing or potential clients without any special treatment to any of the companies/clients involved in terms of quality or pricing.