http://www.engineeringnews.co.za
  SEARCH
Login
R/€ = 13.13Change: -0.02
R/$ = 11.93Change: -0.06
Au 1205.77 $/ozChange: -0.30
Pt 1147.50 $/ozChange: -1.00
 
 
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?








Start
 
End
 
 
And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
 
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters Contact Us
 
 
 
RSS Feed
Article   Comments   Other News   Research   Magazine  
 
 
May 08, 2012

RMS, Vulcania fined in mesh wire cartel case

Back
Africa|Murray & Roberts Steel|Reinforcing|Reinforcing Mesh Solutions|Africa|Solutions|Steel|Vulcania
Africa|Reinforcing||Africa|Solutions|Steel|
africa-company|murray-roberts-steel|reinforcing|reinforcing-mesh-solutions-company|africa|solutions|steel|vulcania-person
© Reuse this



The Competition Tribunal has ordered Reinforcing Mesh Solutions (RMS) and Vulcania Reinforcing to pay penalties of R21.6-million and R5.6-million respectively for price-fixing and customer allocation.

The Competition Commission said on Tuesday it initiated an investigation in 2008, when BRC Mesh Reinforcing, through its parent company Murray & Roberts Steel, admitted its involvement in the cartel, which also included RMS, Vulcania and Aveng Africa (trading as Steeldale Mesch). Murray & Roberts was granted conditional immunity from prosecution, provided it cooperated with the commission during its investigation.

In the tribunal’s hearing, it emerged that, after the cartel discussed and agreed on prices derived from a set formula at industry meetings, industry association the South African Fabric Association circulated recommended price lists for adoption by members. This allowed the companies to simultaneously pass on input cost increases to their customers by providing a common mechanism for deriving the final price.

Vulcania, which denied that its attendance at the meetings amounted to an agreement to join the cartel, was found to have participated in the cartel from January 2006 until January 2008.

Vulcania stated that it only attended meetings to ensure continued supply from its competitors by way of making them believe the firm was part of the cartel. However, the tribunal found that whether Vulcania’s participation was ‘real or a sham’, Vulcania benefited from the cartel as it amounted to protection from potential competition.

The commission said RMS, which was found to be involved in the cartel from January 2004 until January 2008, admitted liability, but argued the extent of its involvement in the cartel and also whether a penalty could be competently imposed upon it and if it could, what an appropriate penalty was.

RMS, further, denied the commissions claim that the company undertook organisational restructuring before the cartel was exposed to avoid penalties, adding that the change was for commercial reasons and, at the time, it was not aware of any legal action against it.

RMS argued that it had no turnover in the relevant financial year and therefore, no penalty could be levied on it. The Tribunal, however, determined the appropriate penalty based on the “earliest preceding year of normal turnover”.

The tribunal, for the first time, based its determination of the penalties on a new six-step approach under the European Union 2006 penalty guidelines, as with an earlier Competition Appeal Court finding in a Southern Pipeline Contractors case in 2011.

Aveng settled the case with the commission in April 2011 and paid an administrative penalty.

Edited by: Mariaan Webb
© Reuse this Comment Guidelines (150 word limit)
 
 
 
 
 
 
 
 
 
Latest News
Updated 9 minutes ago In this context Creamer Media’s Gold 2015 report reviews the global gold market and gold companies that have operations in Africa. It particularly focuses on the South African gold sector, including labour issues and electricity shortages, as well as prospects for...
Updated 1 hour 18 minutes ago The first of a total of 40 Cuban engineers have arrived in the Free State on Sunday, with the rest expected to arrive on Monday. They will mainly be involved in improving service delivery, the construction of government subsidised settlements, houses, the provision...
The new Hilux
Updated 1 hour 41 minutes ago Toyota has lifted the veil on its new, eighth-generation Hilux bakkie, set to launch in South Africa in the first quarter next year. Sales have already started in Thailand.
More
 
 
Recent Research Reports
Steel 2015: A review of South Africa's steel sector (PDF Report)
Creamer Media’s Steel 2015 report provides an overview of the key developments in the global steel industry and particularly of South Africa’s steel sector over the past year, including details of production and consumption, as well as the country's primary carbon...
Projects in Progress 2015 - First Edition (PDF Report)
In fact, this edition of Creamer Media’s Projects in Progress 2015 supplement tracks developments taking place under the Renewable Energy Independent Power Producer Procurement Programme, which has had four bidding rounds. It appears to remain a shining light on the...
Electricity 2015: A review of South Africa's electricity sector (PDF Report)
Creamer Media’s Electricity 2015 report provides an overview of State-owned power utility Eskom and independent power producers, as well as electricity planning, transmission, distribution and the theft thereof, besides other issues.
Construction 2015: A review of South Africa’s construction sector (PDF Report)
Creamer Media’s Construction 2015 Report examines South Africa’s construction industry over the past 12 months. The report provides insight into the business environment; the key participants in the sector; local construction demand; geographic diversification;...
Liquid Fuels 2014 - A review of South Africa's Liquid Fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2014 Report examines these issues, focusing on the business environment, oil and gas exploration, the country’s feedstock supplies, the development of South Africa’s biofuels industry, fuel pricing, competition in the sector, the...
Water 2014: A review of South Africa's water sector (PDF Report)
Creamer Media’s Water 2014 report considers the aforementioned issues, not only in the South African context, but also in the African and global context, and examines the issues of water and sanitation, water quality and the demand for water, among others.
 
 
 
 
 
This Week's Magazine
While economic forecasts for the African continent are most favourable, African airlines may not be able to benefit from the expected growth in the region’s gross domestic product (GDP), International Air Transport Association VP: Africa Raphael Kuuchi has warned....
The Automotive Production and Development Programme (APDP) will need to change substantially post 2020, says Metair Investments South African operations COO Ken Lello. “We must not make tweaks. We have to change. What we are doing is not sustainable.”
Banking group Absa’s forecast is for the rand to end the year at around R13 against the dollar, weakening further to R13.50 by 2016, says Absa sectoral analyst Jacques du Toit. He warns that possible interest rate hikes in the US may see capital being pulled from...
The Dispute Resolution Centre at the Bargaining Council for the Civil Engineering Industry (BCCEI) is now open to handle party-to-party disputes. The BCCEI represents the interests of all level four to nine Construction Industry Development Board companies.
FREDRIK JEJDLING Sustainability becomes an important part of a business’ decision-making process
Communications technology firm Ericsson sub-Saharan Africa head Fredrik Jejdling says the company’s commitment to sustainability and corporate responsibility has been integrated into all facets of its operations, which has provided it with sustainable revenue...
 
 
 
 
 
 
 
 
 
Alert Close
Embed Code Close
content
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
 
 
Close
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96