CRH fined €25m for price-fixing in Poland

IRISH BUILDING materials giant CRH has been fined €25 million by Poland’s competition watchdog following an investigation into…

IRISH BUILDING materials giant CRH has been fined €25 million by Poland’s competition watchdog following an investigation into price-fixing in the eastern European country.

The company is likely to appeal the ruling to Poland’s competition court. In a statement yesterday it signalled the inquiry did not take all the relevant evidence into account.

Poland’s Office of Consumer Protection (OCCP) said yesterday it has imposed record fines, totalling close to €100 million, on five operators: CRH subsidiary Grupa Ozarów, Cemex, Dyckerhoff, Cementownia Warta and Cementownia Odra, for fixing the price of grey cement and market sharing.

CRH yesterday said Ozarów’s share of the total came to approximately €25.6 million. Two other operators, Lafarge and Górazdze, a subsidiary of Heidelberg, qualified for leniency. Both supplied the OCCP with documents and other information.

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The OCCP said yesterday it began its investigation at the end of 2006. The evidence it obtained showed the seven companies, which account for almost 100 per cent of the market, had fixed minimum prices for grey cement, and agreed on a market share for each operator. As a result, the office imposed the maximum fines on the five companies that did not seek leniency.

CRH yesterday described the ruling as a matter of serious concern. “CRH always understood that Grupa Ozarów conducted an independent commercial policy in the Polish cement industry,” it said. “This has been verified by analysis undertaken, at the request of CRH, by leading Polish economic experts. Following a preliminary review of the OCCP conclusions, CRH and Grupa Ozarów have been advised that there are significant grounds for appeal.”

The company would not comment further, pending its decision on whether to appeal.

It has until December 23rd to lodge proceedings.

It is understood that CRH intends appealing the ruling, which means it will face a full court hearing. Part of its case will be that the economic review shows the prices charged by Ozarów for cement tracked market conditions.

Its prices fell earlier in the decade when the Polish economy slowed and rose as it picked up in more recent years.

Barry O'Halloran

Barry O'Halloran

Barry O’Halloran covers energy, construction, insolvency, and gaming and betting, among other areas