Tim King
CRH subsidiary Irish Cement Ltd yesterday failed to overturn a judgment and €2 million fine for its part in a cartel to fix cement prices across Europe.
The European Court of Justice upheld the rulings of its junior court, the European Court of First Instance, refusing to declare the decision void and reduce the fine, as Irish Cement Ltd had sought.
The case stemmed from an investigation by the European Commission into the practices of the cement industry at the beginning of the 1990s, which found that cement producers had colluded in exchanging information on prices and keeping competition out of their home markets.
The Commission eventually fined 42 companies and associations a total of €248 million for their participation in a cartel.
It fined Irish Cement €3.5 million, which was reduced by the European Court of First Instance to €2.065 million.
Irish Cement, whose headquarters are in Drogheda, appealed to the European Court of Justice, along with the Italian firm Italcementi Fabbriche Riunite Cemento, which had been fined €25.7 million; Ciments Francais, which had been fined €13.6 million; and three other firms.
Only Ciments Francais succeeded in having its fine reduced - to €9.6 million.
Irish Cement was ordered to pay the costs of its appeal.
CRH finance director Mr Myles Lee said the company was "disappointed and surprised" about the result of the case, despite making full provision for the fine some years ago.
He said the company would be examining the judgment with its lawyers.
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