Chile/Peru: Major cement makers Bio Bio & UNACEM face off over new plant

Chilean cement maker Cementos Bio Bio, along with its Brazilian partner Votorantim, has accused Peru’s largest cement company, Unacem, of resisting and hindering the construction of their new cement plant in Lima.

Unacem, which dominates 60% of Peru’s market, has sought, in the opinion of Cementos Bío Bío, to prevent the plant’s construction and its possible threat to Unacem’s leadershipat all costs, mainly through the courts, including unsuccessful litigation and complaints for alleged breaches of environmental regulations, among other.

Cementos Bío Bío and Votorantim decided to respond by presenting the country’s regulator, INDECOPI, with two lawsuits against Unacem alleging uncompetitive conducts.

The cement market in Peru is highly fragmented, with one dominant producer in each geographical area. Pacasmayo dominates in the north, while Cementos Yura holds the south. Unacem, which until recently was called Cementos Lima, has a regional monopoly over the heartland (including the city of Lima), which concentrates the greatest demand, giving the company firm 60% of the national market.

Full Content: La Tercera

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