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Ready-made concrete manufactures to go on strike

16/06/2004 13:02
Members of the Cyprus Association of Ready-Made Concrete Manufacturers decided on Wednesday to go on strike as from Monday so as to safeguard the security of the buildings under construction.

On its announcement, the Association reported that this is a result of the inability of the two Cyprus’ cement companies to supply the market with sufficient quantities of cement. “The problematic situation is further burdened by the cement exports. Ready-made concrete manufacturers are, therefore, unable to produce the necessary quantities of ready-made concrete for the construction of buildings”, the announcement noted.

Are imports the solution?

On his statements to StockWatch, Chairman of the Association, Neoclis Kyriakou said that cement exports might aim at leading the island to a shortage, pushing prices up. “The demand for cement will continue to increase, despite the negative effects from the imposition of 15% VAT on properties. The new building specifications demand more and more cement and the production of cement by the two companies is not sufficient. The state must also consider the construction of infrastructure for cement imports”, Mr. Kyriakou said.

StockWatch sources reveal that the cost of infrastructure will reach millions of pounds. “This investment will be wiped out by the imports”, Land Developers Association Chairman, Lakis Tofarides said. On the question whether the construction boom will continue in the future, Mr. Tofarides said that despite the imposition of VAT and the increased cost, cement demand will continue.

Cyprus Cement Company General Manager, Giorgos Galatariotis expressed his surprise on the decision of the ready-made concrete manufacturers. “There is no shortage of cement and all customers are served normally. I do not understand why they intend to do so. The Commerce Minister said that the recent price hike in cement was justified”, he concluded.