Tuesday, September 9, 2014

CHINA: Three cement companies implement price fixing and was fined 114 million yuan

National Development and Reform Commission of Jilin Province Price Bureau instructed the cement sales of Jilin Yatai Group Co., Ltd. , Northern Cement Co. , Jidong Cement Co., Ltd. , Jilin three cement companies implement price monopoly behavior , according to the law fined a total of 1.1439 million yuan. Among them, the Yatai fined 60.04 million yuan , on the north fined 40.97 million yuan , Jidong fined 13.38 million yuan . Recently, the relevant disciplinary procedures have been fulfilled, the situation now announced as follows .

Since March 2013 , the National Development and Reform Commission price supervision and inspection and anti -monopoly Bureau of the local cement industry, there is some pricemonopolistic behavior , the organization launched an antitrust investigation . After investigation, April 14, 2011 , the Company and the North Yatai company ‘s stakeholders meeting in Jidong Yatai company , agreed regional cement ( clinker ) prices and the implementation of policies , forming a ” key cement enterprises in Jilin Province regional pricing resolutions of the meeting , ” agreed clinker export prices by 300 yuan / ton executed , enter the Liaoning region clinker prices not less than 300 yuan / ton . The meeting also formed Changchun , Matsubara , rock regional cement prices resolutions , three companies agreed since at 0:00 on April 16th, 2011 from cement prices all adjustments to the latest execution price , and developed a ” Changchun , Matsubara , rock regional cement prices execution table ” , setting out the specific implementation of the price of bagged and bulk cement sales of the three companies selling PC32.5, PO42.5, PII52.5 three varieties , clear all varieties of cement prices in the table for the three companies to perform factory lowest price , listing pricesand external offer under the circumstances raised at least 10-20 yuan / ton . The meeting also tentatively scheduled April 25, 2011 three companies identified in Jidong Cement Jilin area in May execution price and execution of policies. In Yatai company April 15, 2011 to all departments Changchun area , Ming City Cement sales price adjustments in the enforcement notice issued by his subordinates , clearly with the Northern Company , Jidong companies have reached a price agreement execution , along with the implementation of agreed regional cement prices table sets out the sales execution price northern companies and Jidong cement companies in different varieties .

Also found , May 11, 2011 , the Company and the relevant personnel in northern Yatai Yatai Group companies held in Tonghua Cement Co. meeting , agreed Tonghua , Baishan regional cement prices , and the formation of the ” 2011 cement industry in Jilin Province Tonghua , Hakusan area a second time pricing will be meeting minutes , ” the company has developed and Yatai northern region in Tonghua and Baishan regional cement prices to perform list , agreed to a PC32.5, PO42.5, PII52.5 three varieties bagged and bulk cement concrete execution price sales , and clearly the price of cement in the region since the implementation of this meeting May 12, 2011 to determine the price . The meeting also recommended that May 26, 2011 for the operation of the regional market to discuss and determine the next phase of the market price.

Yatai Company , Northern companies and Jidong Company by way of frequent meetings , agreed sales price of cement , and the implementation of the resolutions agreed price in the business , agreed and implemented a price-fixing agreement in violation of China’s ” anti-monopoly law “requirement to eliminate or restrict competition in the market , controlling cement sales prices, harm the interests of downstream industries and consumers.

Taking into account the situation of China’s cement production capacity surplus , the three companies agreed and implemented price-fixing agreement duration is not long, the market competition is limited to a certain area range damage , accordingly , do not actively cooperate with the investigation Yatai company , Jidong the company imposed a fine of 2% of sales for 2012 were total 60.04 million yuan and 13.38 million yuan ; being able to actively cooperate with the investigation and rectification of the North ‘s punishable by a fine of 1% in sales year 2012 , total 40.97 million yuan .

Next , the National Development and Reform Commission will instruct the relevant provinces (municipalities ) anti-monopoly law enforcement agencies to cement price fixing behavior has been verified be punished according to the law , maintaining a fair and orderly market competition, protect the legitimate rights and interests of consumers.

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