Grapevine: Cement manufacturers demand probe into speculations

Rumours of collusion meant to create panic in stock market, laments APCMA.

LAHORE: All Pakistan Cement Manufacturers Association (APCMA) has urged regulators of stock markets to seriously investigate who is behind the rumour mongering against the cement sector. Blowing rumours like capacity enhancement out of proportion is creating panic in stock markets whereas there is no truth to such news items in reality, according to the APCMA.

Referring to different news items, APCMA spokesman, in a statement, claimed that vested interests are behind this campaign to gain easy money by manipulating stocks. Thus, concerned departments should investigate as to who is behind this campaign of maligning cement manufacturers with baseless accusations of forming a cartel.



He said that it has been categorically refuted on numerous occasions that no cartel exists or operates in the cement sector of the country.

He informed that the association is a registered trade body established to look after issues relating to the government and its members. As such, he added, there is no harm in the periodical meeting of its members operating under the umbrella of the APCMA.

He expressed surprise on an analysis by brokerage houses that the industry players are afraid of any multinational cement manufacturer already operating in Pakistan. “What difference would it make if there is a change of hand from one global player to another?” he wondered.

“The fact that some players operating plants in the north are planning to establish new production units in south clearly indicates that the industry players are operating on the principles of free market,” he said, adding that this also negates the notion that cement units operate as a cartel.

“Every investor has the right to operate his business anywhere in Pakistan, and industry players dividing regions between themselves would be negating the principles of a free market,” he concluded.

Published in The Express Tribune, April 11^th, 2014.

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