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Cementos Pacasmayo: main competitors in Peru

The Peruvian cement market is basically composed of three groups and 2 other plants, according to Cementos Pacasmayo.

The level of competitiveness of cement companies generally depends on their cost structure, which is a function of the cost of energy, fuel, raw material costs and transportation.

In general, cement companies in Peru compete within the limits of their distribution market, which is determined mainly by their geographic location.

Cementos Pacasmayo

The main competitors in the Peruvian market are:

  • Cementos Pacasmayo and Cementos Selva, which serve mainly the northern region.
  • UNACEM, which serves mainly the central region.
  • Cementos Yura and Cementos Sur, which mainly serve the southern region.
  • Caliza Cemento Inca, located in Cajamarquilla, Lima, serving mainly the central region, as well as other regions of the country.
  • Mixercon, located in the city of Lima, serves mainly Lima and, to a lesser extent, some of the country’s provinces.

Domestic Market

In addition, there are cement importers that supply mainly the cities of Lima and, to a lesser extent, other provinces of the country.

The main characteristics of the Peruvian cement sector are as follows:

  • Highly fragmented consumer base.
  • Relatively low cost of energy and raw materials.
  • Operations and distribution determined primarily by geographic location.
  • High correlation with self-construction and public and private investments.

In Peru, companies are generally not required to receive prior authorization from the antitrust authority, which in Peru is INDECOPI.

However, in order to promote economic efficiency and protect consumers, anticompetitive conduct is subject to sanctions under current legislation. Prohibited conduct under Peruvian law includes abuse of a dominant market position, horizontal concerted practices and vertical concerted practices.

In addition, under the Unfair Competition Act, it is illegal to act in a way that may hinder the competitive process. Unfair behavior is behavior that is objectively contrary to good business faith, ethical behavior and efficiency in a market economy.

On January 7, 2021, Law No. 31112, Law that establishes the Prior Control of Business Concentration Operations, was published in the Official Gazette “El Peruano” and became effective on June 14, 2021, together with its Regulations, approved by Supreme Decree No. 039-2021-PCM.

This Law establishes a system of prior control of business concentration operations in order to promote effective competition and economic efficiency in the markets for the welfare of consumers.

 

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