CEMEX Holdings Philippines (CHP) has been fined PHP50 000 for violating its environmental permit. The fine relates to September 2015 incident, when heavy fuel oil overflowed its storage tank at CHP’s subsidiary, SOLID Cement Corp., during a period of strong winds and heavy rain.
The incident was among items disclosed in CHP’s prospectus for its initial public offering last year.
The fine was imposed by the Environmental Management Bureau (EMB) of the Department of Environment and Natural Resources.
Despite issuing the fine, the EMB also recognised SOLID Cement’s “swift response to the situation. According to the bureau, the spill was cleaned-up within seven days of the incident, while a water sampling test conducted after the spill returned “good results”.
The fine will not have a material adverse impact on CHP’s operations, liquidity, and financial condition, the company said.
CHP is the second largest cement producer in the Philippines, but recently reported a 46% fall in net income in 2Q17, a result of lower prices and volumes, and higher operating expenses. The company was also hit by a longer-than-expected shutdown at its AOP plant in Cebu.
Read the article online at: https://www.worldcement.com/asia-pacific-rim/07092017/chp-fined-by-filipino-environmental-regulator/