LafargeHolcim’s aggregate operations suspended again
LafargeHolcim Bangladesh has again suspended its aggregate production after the industries ministry filed a petition.
The Judge-In-Chamber forwarded the Civil Miscellaneous Petition (CMP) from the ministry for hearing before the Full Bench of the Appellate Division.
Accordingly, the aggregates operations of the company will remain closed until January 24, 2022 with immediate effect, the multinational company said yesterday in a regulatory filing on the website of the Dhaka Stock Exchange.
LafargeHolcim's stock closed 0.88 per cent lower at Tk 78.90.
The industries ministry filed the case before the Judge-in-chamber against the judgment passed by the Division Bench of the High Court Division on January 5. On that day, the multinational cement manufacturer received the final nod from the High Court to resume its aggregate business in the country.
Aggregate is a broad category of coarse particulate material used in construction, including sand, gravel, crushed stone, slag, recycled concrete and geo-synthetic aggregates.
LafargeHolcim has set up the crushing unit with ancillary equipment on the premises of its existing integrated clinker and cement manufacturing plant in Chhatak, Sunamganj in January last year.
It has the approval to bring in limestone through a cross-border conveyer belt from India for the purpose of manufacturing cement and clinker.
But in September this year, the industries ministry directed LafargeHolcim to stop producing aggregates by crushing the same raw material and marketing them locally as it had no legal layout plan and approval, according to a letter of the ministry.
LafargeHolcim had filed a writ petition, challenging the ministry's instruction. On October 11, the High Court issued a rule. On January 5, the Division Bench delivered judgment making the rule absolute.
LafargeHolcim has the capacity to produce 12 lakh tonnes of clear-sized graded aggregate per annum. It invested Tk 40.1 crore.
The annual demand for clear-sized aggregate is around 1.5 crore tonnes and Bangladesh relies on imports from the countries such as India, Bhutan, Vietnam, Oman and the UAE for supply.
Thanks to the unit, LafargeHolcim will capture about 2 per cent share of the aggregate market in the country.
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