Jema Cement complained that Pacific Petroleum Corporation has failed to honor an agreement to deliver 14,000 tons of petroleum. The Ethiopian company alleges that Pacific Petroleum Corporation failed to deliver more than 95% of the petroleum it expected in 45 days.
Jema sent a letter of complaint to the National Bank of Ethiopia asking for enforcement of the agreement or steps to stop the Sudanese firm from taking advantage of other companies in the Ethiopian cement sector.
Jema’s letter to the central bank evidenced that it had opened a letter of credit through Zemen Bank, to satisfy its end of the agreement. The letter also alleged that the deal has resulted in large loses to Jema Cement and its customers. Jema claimed that its customers, including government managed cement producers, have been affected by the actions of Pacific Petroleum.Jema Cement, established with a startup capital of 271 million, imports and distributes petroleum coke, which is a major factory input in the production of cement. The company has constructed a cement factory in Semien Shoa zone of the Amhara Regional State with a 120 million tons production capacity.
Source: The Reporter
