American Expatriate Costa Rica

Sinocem China denounces breach of contract by importer

Sinocem China, a cement producer and distributor, has confirmed to the national press that it will take legal action against Juan Carlos Bolaños, a Chinese cement importer. The eastern company ruled out any link with Bolaños’ company and said that the cement importer has illegally used its brand, bought substandard cement and used his companies to raise product prices to sell it in the national market.

Sinocem China indicated that Sinobuilding Materials Hong Kong Limited is a “sister company” of Sinocem of Costa Rica. That is, the Bank of Costa Rica has been giving money to two companies that belong to Juan Carlos Bolaños Rojas instead of the manufacturer company as stated in the credit agreement. The BCR granted Bolaños not one, but two credits that total about $ 30,000,000.

The businessman, whom President Luis Guillermo Solís defended in his social networks, would have handled the money of all Costa Ricans with his own societies.

The cement sold by Sinocem China has been fully invoiced to the Sinobuilding Hong Kong company, which sells the cement at another price to Sinocem Costa Rica,”

the company said through its legal department.

The representatives of the Chinese company were upset because although they had signed an exclusive distribution agreement,

from January 1st, 2017 to July 18th, 2017, neither Sinocem Costa Rica nor Sinobuilding have bought the products ofrom Sinocem China (…) Without our consent, they bought 15 thousand tons of cement from other exporters, but used Sinocem’s brand and bags printed with our logo. This behavior constitutes an essential breach of the contract (…) Sinocem China states that cements purchased by Sinocem Costa Rica / Sinobuilding from any other company have nothing to do with our company and don’t have the quality of Sinocem China.”

The Chinese company said it will take a series of legal actions against Juan Carlos Bolaños Rojas, whom Víctor Morales Zapata, Rolando González, Luis Vásquez and Otto Guevara have defended from the First Power of the Republic.

The Bank of Costa Rica changed its regulations before the first disbursement of the loan granted to Juan Carlos Bolaños to accept the cement as a guarantee of the loan.

crhoy.com