Former UCAR Executive Robert Krass Pleads Guilty to Price-Fixing

OTTAWA, September 18, 2003 — The Competition Bureau announced today that Robert P. Krass, former head of UCAR International Inc. (UCAR), pleaded guilty and was convicted of fixing the price of graphite electrodes. He was fined $70,000 by the Federal Court of Canada for his direct involvement in an international price-fixing conspiracy which affected the production of Canadian steel.

"Executives who engage in price-fixing are personally accountable under the law," said Denyse MacKenzie, Senior Deputy Commissioner of Competition. "The Competition Bureau will be aggressive in pursuing executives who play a central role in cartel activities."

As Chief Executive Officer and later Chairman of UCAR, Mr. Krass led the firm's involvement with other major producers to fix prices and share volumes of graphite electrodes sold in Canada and elsewhere. During the conspiracy, prices for graphite electrodes in Canada almost doubled.

Graphite electrodes are used primarily in the production of steel in electric arc furnaces and for steel refining in ladle furnaces.

Mr. Krass, a U.S. citizen, is the fourth party to plead guilty in Canada in relation to the graphite electrode cartel. Previously, UCAR's Canadian subsidiary UCAR Inc., the German corporation SGL Aktiengesellschaft, and the Japanese company Tokai Carbon Co., Ltd. were convicted for their roles and fined a total of almost $24 million. The Bureau's investigation into the graphite electrode industry continues.

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
No. T-1588-03
Indictment (PDF: 67KB)
Agreed Statement of Facts (PDF: 300KB)

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