ECONOMY

ECONOMY: Lafarge Cement Ask the court to stop SON from closing factory...

Lafarge Cement WAPCO Nigeria Plc, has asked a Federal High Court sitting in Lagos, to restrain the Standard Organisation of Nigeria, SON, its agents, from closing its business premises, following a recent directive on product labeling and traceability requirements, pending the hearing and determination of the suit pending in the court.

Lafarge, a cement manufacturer, which is challenging the power of SON to pre-approve all advertisement/commercials of the plaintiff’s as well as certify block makers in Nigeria, is contending that the directive by SON confer unfair advantage to its competitors and enthroning monopoly in the cement industry.

The company, which is also contending that it had no complains about the product labeling, also noted that deadline for same was too short, as it required more time to calibrate its machines to achieve same.

The company in an affidavit in support of the suit, averred that SON convened a meeting of stakeholders of the Cement manufacturing sector and at the said meeting, the defendant came up with an action plan termed “The Standards of Organisation of Nigeria’s Directives on Product Labeling and Traceability Requirements, a set of new policies to be observed by cement manufacturers.

“After the July 21, 2014 meeting of stakeholders of Cement industry with officials of the defendants, the defendant’s Director-General addressed the media, where he issued a 60 day ultimatum to Cement manufacturers to comply with its said directives on product labeling and traceability requirements and has reiterated its readiness to sanction cement manufacturers for failure to comply with the directives/policies.

“This is further corroborated by the defendant’s letter dated August 5, 2014 which is addressed to the plaintiffs Managing Director. The defendant’s published directives/policies are designed to de-market the plaintiff’s 32.5 grade cement, and confer unfair advantage to the plaintiff’s competitors and enthrone monopoly in the cement industry.

“The defendant in an attempt to confer unfair advantage to the plaintiff’s competitors and enthroning monopoly in the cement industry has arrogated itself to the powers to pre-approve all advertisement/commercials of the plaintiffs as well as certify block makers in Nigeria.

“The plaintiff has reasons to believe that the published policies and directives by the defendants are not within the ambit of their enabling law/statute, hence the substantive suit instituted by the plaintiff against the defendant.

- See more at: http://www.vanguardngr.com/2014/09/lafarge-asks-court-stop-son-sealing-factory/#sthash.2449CQOQ.dpuf