Thursday, November 18, 2010

INDIA: Impasse continues at Ambuja plants in Himachal

Swiss cement major Holim-owned Ambuja Cements continues to face deadlock with the truckers who have stopped transporting cement from its two units in Himachal Pradesh.

As the strike by transporters has entered its second month, production of the cement at company's Suli and Rauri plant have been completely shut.

Truckers have been demanding for a rise in transport rates, which Ambuja says is way above the increase which was agreed as per the cost adjustment formula to settle freight increases.

"Not only have they (transporters) stopped transporting the goods, they have discouraged the use of other transporters. Consequently there has been a complete stoppage of cement and clinker dispatches as well as the receipt of incoming materials since first week of October," said Ambuja Cements in a statement today.

However, the company sounded pessimistic regarding meeting a solution with the strikers. "We cannot exclude that the impasse might continue and the dispatches of cement from both plants will continue to suffer and only slowly to return to more normal levels when alternative arrangements are in place," added the company.

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