The Anti-Trust Committee has completed the probe into the Shangfeng-Bridge of Friendship cement plant in Andijan province, the presidential press service said.

In July, the committee opened an anti-dumping case against the company. Several cement plants in Fergana Valley filed a complaint against Shangfeng-Bridge of Friendship, claiming that the company had allegedly been selling products on the domestic market at prices below cost, which put them on the brink of bankruptcy.

The study found that 122.7 thousand tons of cement were sold from March to July of this year, which should have been sold through exchange trading. Instead, the products were sold under direct contracts, which contradicts the established requirements.

While, 2,700 tons of cement were sold at prices higher than average exchange quotations, which resulted in unjustified income in the amount of 81.1 million soums. The committee assessed these actions as unfair competition.

The committee's special commission decided to fine the company 4.9 billion soums for dumping and restricting competition during exchange trading. Shangfeng-Bridge of Friendship was ordered to rectify the identified violations and prevent their recurrence in the future.

Documents related to the calculation of value added tax (VAT) and income tax on the sale of highly liquid and monopoly products (cement) based on direct contracts were submitted to the tax authority.

Plans to erect two cement plants in the Bulakbashi district of the Andijan province worth $500 million were reported in October 2023. At that time, the provinceal governor Shukhrat Abdurakhmanov underscored that the enterprises would be able to export products worth $20 million per year and replace $15 million in imports.

Shangfeng — Bridge of Friendship was launched at the end of April, with a capacity of 2.5 million tons of cement per year. Its founders are Chinese Zhejiang Shangfeng Building Materials (29%), Conch International Holdings Hong Kong Limited (51%) and local Jo’ydam Ta`mir Qurilish (20%).

A second West China Cement plant with similar capacity opened in May.