Canadian Competition Bureau Wraps up Electrode Conspiracy Investigation
11/12/2007 - The Canadian Competition Bureau completes its investigation of a 1992-1997 conspiracy in the graphite electrodes market with the conviction of SEC Carbon, Ltd.
The Canadian Competition Bureau announced that SEC Carbon, Ltd. of Japan has pleaded guilty to participating in a conspiracy in the graphite electrodes market. The company was fined $250,000 by the Federal Court of Canada.
According to the Competition Bureau, SEC supported an international conspiracy of the world's major graphite electrode manufacturers that operated between 1992 and 1997. During that period, participants in the conspiracy agreed to fix prices and volumes sold in various markets, and to divide world markets. In Canada, SEC supported this conspiracy by not selling graphite electrodes to Canada during this period.
"This international price-fixing and market allocation conspiracy resulted in artificially high prices for graphite electrodes in our country to the detriment of the Canadian consumer and the Canadian economy," said Denyse MacKenzie, Senior Deputy Commissioner of Competition. "SEC's conviction for the crime of conspiracy demonstrates the resolve of the Competition Bureau to pursue foreign companies that participate in illegal agreements that harm the Canadian marketplace."
SEC is the eighth party to be convicted in Canada for participating in the graphite electrodes cartel as a result of an investigation by the Competition Bureau. Nippon Carbon Co., Ltd., UCAR Inc., SGL Carbon AG, Tokai Carbon Co., Ltd., Mitsubishi Corp., and two former UCAR International Inc. executives, Robert P. Krass and Robert J. Hart, were previously fined a total of nearly $25 million for their roles in this international conspiracy.
According to the Competition Bureau, SEC supported an international conspiracy of the world's major graphite electrode manufacturers that operated between 1992 and 1997. During that period, participants in the conspiracy agreed to fix prices and volumes sold in various markets, and to divide world markets. In Canada, SEC supported this conspiracy by not selling graphite electrodes to Canada during this period.
"This international price-fixing and market allocation conspiracy resulted in artificially high prices for graphite electrodes in our country to the detriment of the Canadian consumer and the Canadian economy," said Denyse MacKenzie, Senior Deputy Commissioner of Competition. "SEC's conviction for the crime of conspiracy demonstrates the resolve of the Competition Bureau to pursue foreign companies that participate in illegal agreements that harm the Canadian marketplace."
SEC is the eighth party to be convicted in Canada for participating in the graphite electrodes cartel as a result of an investigation by the Competition Bureau. Nippon Carbon Co., Ltd., UCAR Inc., SGL Carbon AG, Tokai Carbon Co., Ltd., Mitsubishi Corp., and two former UCAR International Inc. executives, Robert P. Krass and Robert J. Hart, were previously fined a total of nearly $25 million for their roles in this international conspiracy.
SEC's conviction completes the Bureau's investigation.
The Canadian Competition Bureau, an independent law enforcement agency, contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.
The Canadian Competition Bureau, an independent law enforcement agency, contributes to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.
