Nippon Electrodes fined $225,000 for role in conspiracy

Japanese Company Second To Plead Guilty In Competition Bureau Probe

OTTAWA, November 9, 2004 The Competition Bureau announced today that Nippon Electrodes Company, Ltd. ("NDK") pleaded guilty and was fined $225,000 by the Federal Court of Canada for its role in a conspiracy to fix the price of cathode block, a product used in the production of aluminium.

"The Bureau actively pursues those who harm Canadian businesses and consumers," said Colette Downie, Assistant Deputy Commissioner of Competition. "Price fixing increases the cost of products and harms the Canadian economy."

The Bureau's investigation revealed that during 1996 and 1997, representatives of NDK and other producers agreed to fix the price of carbon cathode block sold in Canada. At various times throughout this two-year period, producers discussed implementing and maintaining fixed prices and price increases for the product.

NDK sold at least $1.5 million of the cathode block in Canada, through trading companies, over the course of the agreement. The Japanese company is the second company convicted in Canada for its role in the cathode block conspiracy. In September 2004, VAW Carbon GmbH pleaded guilty in Federal Court and was fined $500,000.

The Competition Bureau is an independent law enforcement agency. We contribute to the prosperity of Canadians by protecting and promoting competitive markets and enabling informed consumer choice.

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