Competition Bureau
ToolsRelated topicsResourcesFormer UCAR executive pleads guilty to price fixingOTTAWA, March 2, 2005 - The Competition Bureau announced today that Robert J. Hart, a former senior vice president of UCAR International Inc. (UCAR) [now GrafTech International Ltd.], pleaded guilty and was fined $50,000 by the Federal Court for his role in a conspiracy to fix the price of graphite electrodes. During the conspiracy, Canadian prices for graphite electrodes used in steel production nearly doubled. "This conviction sends a message that executives involved in price fixing conspiracies that harm the Canadian marketplace are personally accountable under the Competition Act," said John Pecman, Acting Deputy Commissioner of Competition. "The Competition Bureau will continue to aggressively pursue corporations and individuals involved in cartels to ensure Canadians can enjoy the benefits of competition." Mr. Hart, a U.S. citizen, is the second individual and the fifth party to plead guilty in Canada to participating in the graphite electrodes cartel. Previously, UCAR's Canadian subsidiary UCAR Inc., the German corporation SGL Carbon Aktiengesellschaft, and the Japanese company Tokai Carbon Co., Ltd. were convicted for their roles and fined a total of almost $24 million. UCAR's former head, Robert P. Krass, pleaded guilty in 2003 and was fined $70,000 by the Federal Court of Canada. Between 1992 and 1997, members of the cartel agreed to fix the prices of graphite electrodes sold in Canada. Mr. Hart participated in the conspiracy by sharing information concerning pricing, customer accounts and sale volumes with competitors, and by directing UCAR representatives to eliminate discounts and raise prices in Canada in concert with UCAR's agreement with conspirator companies. During this period, UCAR Canada and SGL Canada supplied over 90 percent of the $440 million Canadian market for high-power graphite electrodes. These products are used primarily in the production of steel in electric arc furnaces and for steel refining in ladle furnaces. The Competition Bureau is an independent law enforcement agency that promotes and maintains fair competition so that all Canadians can benefit from competitive prices, product choice and quality service. It oversees the application of the Competition Act, the Consumer Packaging and Labelling Act, the Textile Labelling Act and the Precious Metals Marking Act. Court Documents
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Created: 2005-03-02 Updated: 2005-06-29 |
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