Chemicals company Elementis has lost nearly 9% of its value on news of a hefty fine by the European Union, relating to the murky world of, gulp, heat stabilers.
As part of a €173m penalty levied on 24 companies for allegedly being a cartel that fixed prices for heat stablisers - chemicals involved in making packaging products heat resistant - Elementis has been fined €14.3m. On top of that it faces another €18.2m penalty shared with Akcros Chemicals and other companies owned by Akzo Nobel.
EU commissoner Neelie Kroes said:
The companies' elaborate precautions to cover their tracks did not prevent the commission from revealing the full extent of their determined efforts to rip off their customers.
But Elementis said it had not made such products since 1998, when it sold its 50% stake in Akcros to its joint venture partner, Akzo. Elementis said it would contest the fine and defend its position the penalty should not be imposed. It added that its policy was to "conduct its business in full compliance with all applicable competition laws."
According to the EC the price fixing began in 1987. This one could run and run.
