Brussels, 18/07/2001 (Agence Europe) - On Wednesday, the European Commission imposed fines representing a total of 218.8 million euro on eight companies which, between 1992 and 1998, participated in a cartel in which they fixed prices and shared out the graphite electrode market.
The companies concerned are (in parenthesis the amount of the fine in euro): SGL Carbon AG (Germany 80.2 million), UCAR International Inc. (United States: 50.4 million), Tokai Carbon Co, Ltd (Japan: 24.5 million), Showa Denko K.K. (Japan: 17.4 million); VAW Aluminium A.G. (Germany; 11.6 million), SEC Corporation (Japan: 12.2 million), Nippon Carbon co. ltd (Japan 12.2 million) and The Carbide Graphite Group Inc. (United States: 10.3 million). The Commission established that the cartel had begun in 1992 on the instigation of SGL and UCAR, which together cover two-thirds of European demand, and that it continued until 1998, despite investigations undertaken by the anti-trust authorities in the United States, Canada and the EU. During the time of the cartel, prices for graphite electrodes increased by 50%. Commenting on the decision, Mario Monti, European Commissioner responsible for competition, considered that: "the substantial fines imposed in this case are warranted in the light of the particular gravity of the infringement (…) and intended to dissuade companies from engaging in similar illegal practices in future". "At the same time, by granting a very substantial reduction in the fine imposed on Showa Denko and significant reductions to several other companies, the Commission shows that it takes proper account of companies' cooperation in uncovering cartels", he added.
Graphic electrodes are mainly used in the production of steel for steel in electric furnaces.