Shangfeng cement plant fined 4.9 billion UZS for dumping and unfair competition

As it was previously reported, the Competition Committee initiated an anti-dumping case against the Shangfeng—Bridge of Friendship cement plant.

During the investigation, the committee uncovered several violations. From March to July, the joint venture sold 122.7 thousand tons of cement through direct contracts, bypassing the exchange trading required by law.

The company also received an unjustified income of 81.1 million sums by selling 2.7 thousand tons of cement at prices higher than the exchange rates. Additionally, the regulator identified instances of unfair competition against other cement suppliers.

A special commission under the regional office of the Committee found Shangfeng—Bridge of Friendship guilty of anti-competitive actions, including dumping and restricting exchange competition. The joint venture was fined 4.9 billion sums.

The plant was also ordered to cease the violations and prevent them from occurring in the future. Furthermore, the documents regarding the direct contract sales of cement have been sent to the Tax Committee for calculating profit tax and VAT.

The agreement to establish cement production in the Bulakbashi district was reached in October 2023. At that time, Chinese partners promised to build two plants that could export products worth $20 million annually and replace $15 million in imports.

The Uzbek-Chinese joint venture Shangfeng—Bridge of Friendship began operations in late April. The plant, valued at approximately $250 million, can produce up to 6,500 tons of cement per day.