EC fines sodium chlorate cartel €79.1m

11 June 2008 13:41  [Source: ICIS news]

PARIS (ICIS news)--Four chemical groups were fined a total of €79.1m ($121.6m) on Wednesday for cartel activity in the sodium chlorate market, said the European Commission (EC).

The EC imposed fines for allocating sales volumes and fixing prices for sodium chlorate on EKA Chemicals, Akzo Nobel, Finnish Chemicals, Erikem Luxembourg, Arkema France, Elf Aquitaine, Aragonesas Industrias y Energia and Uralita.

"These companies have to learn the hard way that the EC will impose high fines when they rip off their customers, and ultimately consumers, by forming a cartel,” said EU competition commissioner Neelie Kroes.

The companies - which produce sodium chlorate mainly for use as a bleaching in the pulp and paper industry - acted in violation of the EU ban on cartels between 1994 and 2000, said the EC.

Akzo Nobel and its subsidiary EKA Chemicals were originally fined €116m, but received full immunity from fines as they were first to provide information about the cartel.

Finnish Chemicals and holding company Erikem Luxembourg's fine of €20.30m was reduced by 50% to €10.15m because they cooperated with the investigation.

Arkema and Elf Aquitaine were jointly fined €59.02m - the fine imposed on Arkema France was increased by 90%, as the company had already been condemned for three previous cartels.

Spain’s Aragonesas and Uralita were jointly fined €9.9m.

Arkema and Kemira, which acquired Finnish Chemicals in 2005, both said the fines would not affect their results.

Arkema said it may consider lodging an appeal with the European Court of First Instance, while Kemira said it would look into the EC's decision before deciding on any action.  

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By: Philippa Jones
+44 20 8652 3214

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