Thursday, July 23, 2009

Calcium Carbide Cartel Fined 61 Million Euros

European Union antitrust regulators have imposed a combined fine of 61 million euros ($87 million) on nine companies for forming a calcium carbide cartel in breach of EU rules.

The cartel fixed prices and share markets for calcium carbide powder and granules and magnesium granulates in a large part of the European Economic Area between 2004 and 2007, the European Commission said in a statement on Wednesday. The companies are Almamet, Donau Chemie, Ecka Granulate, Holding Slovenske elektrarne, which formerly owned TDR Metalurgija), Novacke chemicke zavody and its former parent 1.garantovana, German steel industry supplier SKW Stahl-Metallurgie and its former parent companies Evonik Degussa and Arques industries.

Calcium carbine powder and magnesium granulates are used in the steel industry for desulphurisation or deoxidation purposes. Calcium carbine granulates are used for the production of acetylene, a welding gas.

Paint company Akzo Nobel was not fined because it blew the whistle on the cartel. Evonik Degussa saw its fine rise by 50 percent because of similar infringements in the past.

SKW Stahl-Mettalurgie was given a 13.3 million euro fine. It shares were down 5.6 percent to 12.84 euros in mid-day trading. Akzo was 0.47 percent off at 33.73 euros.

Source: Reuters

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