Nippon Carbon Pleads Guilty to Participating in International Graphite Electrodes Cartel

OTTAWA, December 8, 2005 — The Competition Bureau announced today that Nippon Carbon Co. Ltd. (NCK) pleaded guilty and was fined $100,000 by the Federal Court of Canada for aiding and abetting an international conspiracy to fix the price of graphite electrodes used in steel production.

Between May 1992 and June 1997 graphite electrode manufacturers agreed to fix prices and to divide world markets and the volumes of electrodes sold in the various markets. Tokyo-based NCK supported the cartel’s agreement by not selling graphite electrodes to the Canadian market during this period.

"NCK aided price-fixing arrangements which lessened competition for graphite electrodes in Canada," said Denyse MacKenzie, Senior Deputy Commissioner of Competition. "The Competition Bureau will continue to pursue individuals and businesses involved in price-fixing cartels as a top enforcement priority."

NCK is the seventh party to be convicted in Canada for participating in the graphite electrodes cartel. UCAR Inc., SGL Carbon Aktiengesellschaft, Tokai Carbon Co., Mitsubishi Corp. and two former UCAR executives, Robert P. Krass and Robert J. Hart, were previously fined a total of nearly $25 million for their roles in the international conspiracy.

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.

Statement of Admissions (PDF: 242KB)

Indictment (PDF: 44.6KB)

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