VAW Carbon fined $500,000 for role in international price-fixing conspiracy

OTTAWA, September 22, 2004 - The Competition Bureau announced today that VAW Carbon pleaded guilty and was fined $500,000 by the Federal Court of Canada for its role in an international conspiracy to fix the price of cathode blocks. The conspiracy lessened competition in the Canadian market for the products, which are used principally in the production of primary aluminium.

"This conviction demonstrates the Bureau's resolve to hold foreign firms accountable for their participation in anti-competitive agreements that affect Canadians," said Richard Taylor, Acting Senior Deputy Commissioner of Competition. "The Competition Bureau will continue to aggressively pursue international cartels that affect our economy."

German-based VAW Carbon was a member of an international cartel that agreed to implement and maintain price increases relating to the sale and supply of cathode blocks in Canada and elsewhere. Between 1996 and 1997, VAW Carbon was one of a limited number of companies engaged in the production, manufacture, distribution, sale and supply of this product throughout the world.

Cathode blocks are commonly used in the production of primary aluminium. They are manufactured from carbon material which has unique properties, including corrosion-resistance and superior electric current conductivity. Canada is the world's third largest producer of primary aluminium, after the United States and Russia.

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.

Court Documents
Agreed Statement of Facts (PDF: 293KB)
Indictment (PDF: 105KB)

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