Japan’s FTC fines Mitsui, JPC, Chisso for PP price fixing

03 April 2003 04:09  [Source: ICIS news]

SINGAPORE (CNI)--Japan’s Fair Trade Commission (FTC) has ordered Mitsui Chemicals, Japan Polychem Corp and Chisso Corp to pay a total of Yen2.04bn ($17m/Euro15m) in fines for forming a polypropylene (PP) price cartel in 2000, a Mitsui spokesman told CNI on Thursday.

The fine is the sixth-largest for a case since the Antimonopoly Law was revised in 1977, well-informed industry sources said.

FTC fined Japan Polychem about Yen845m, Mitsui Chemicals Yen760m and Chisso roughly Yen435m, a Mitsui source said. Although Grand Polymer Co was among the three firms accused by the FTC, Mitsui Chemicals was punished because it absorbed Grand Polymer in April 2002, the source added.

The three penalised companies and four other petrochemical majors that are contending the case with the FTC agreed to raise polypropylene prices by Yen10/kg in 2000, an FTC source said. The other four companies are Sumitomo Chemical, Idemitsu Petrochemical, Tokuyama Corp and SunAllomer, formerly Montell SDK Sunrise Ltd, the source added.

In May 2001, the FTC ordered the seven to end a PP price cartel practice that allegedly violated the Antimonopoly Law. The seven majors account for almost all production and sales of PP in Japan.

By: Iqbal Anand
+65 6780 4359

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