Corporation Pleads Guilty to Price Fixing

OTTAWA, February 5, 2001 — The Competition Bureau announced today that the Japanese corporation, Tokai Carbon Co., Ltd. has pleaded guilty to aiding its competitors to implement a foreign-directed conspiracy in Canada. Tokai was convicted in the Federal Court Trial Division in Vancouver, and fined $250,000.

Members of this international cartel, which operated from May 1992 until at least June 1997, agreed to fix prices and to divide world markets for graphite electrodes. Under the terms of the conspiracy agreement, it was understood that Tokai would not introduce sales into Canada, a market which was viewed as the preserve of domestic producers UCAR Inc. and SGL Canada Inc. By supporting the conspiracy, Tokai helped the price-fixing agreement to succeed in Canada. It is estimated that, as a consequence of the conspiracy, graphite electrode prices in Canada increased by more than 90 per cent over this six year period.

"All conspirators, even those who have little commerce in Canada, must answer for their involvement in schemes that take advantage of Canadian consumers and businesses," said Johanne D'Auray, Deputy Commissioner of Competition, Criminal Matters. "The Competition Bureau will not ignore such behaviour from any corporation, domestic or foreign."

Tokai is the third company to plead guilty in Canada to the same conspiracy. Canadian-based UCAR Inc. and German-based SGL Carbon Aktiengesellschaft, previously pleaded guilty for their role in the graphite electrode cartel. The Bureau's investigation into the carbon and graphite industry continues.

Graphite electrodes are used primarily in the production of steel in electric arc furnaces (the steelmaking technology used by all mini-mills) and for steel refining in ladle furnaces.

Certified copies of the filed documents may be obtained from the Court Registries (File T-24-01).

Indictment ( PDF: 4.76 KB )
Statement of Facts ( PDF: 264 KB )

The Competition Bureau is an independent law enforcement agency whose mandate is to maintain and encourage fair competition in Canada.

For more information, please contact:

Cynthia Grant
Communication Advisor
Communications Directorate, Competition Bureau
819-994-0349