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BPB to appeal against fine
10:57 05 Dec 2002
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Plasterboard manufacturer BPB is to appeal against the European
Commission's £88.8m fine for allegedly participating in a
cartel, claiming the Commission's case "lacks the evidence
necessary to substantiate its claims".
"BPB has not participated in any cartel and intends to appeal against the level of its fine, which is wholly inappropriate and disproportionately high. None of the Commission's findings relate to any of the group's ongoing activities or business practices, nor do the facts support any finding of BPB's participation in any cartel in the past," said BPB chairman Allan Gormly.
After a four-year investigation, the Commission last week fined BPB and three of its European rivals for operating a cartel that fixed the price of plasterboard. Lafarge was subjected to the biggest fine, £159.8m, and also intends to appeal, Knauf of Germany was fined £54.96m and Belgian firm Gyproc £2.77m.
BPB said it actively co-operated with the Commission throughout its four-year investigation and is disappointed that it has rejected, without justification, much of what BPB said.
"It has not taken into account the wealth of economic evidence of vigorous price competition for market share which is inconsistent with the Commission's findings, nor the lack of any tangible effect of the supposed infringements on the markets concerned.
"Throughout the 1990s European plasterboard prices to customers fell substantially in real terms," said BPB finance director Paul Hollingworth.
"The important thing is that it hasn't affected BPB's on-going business practices," he said, pointing out a rise of 15% in group sales to £953.3m for the group's half-year results to 30 September, announced last week.
"The total amount of the fine has been charged as an exceptional item in BPB's interim accounts and will certainly not dent our pockets - we are large enough to take such a hit," said Hollingworth.
BPB's appeal may take three years to reach the European Court of First Instance, but the company feels it has a "strong case".
"BPB has not participated in any cartel and intends to appeal against the level of its fine, which is wholly inappropriate and disproportionately high. None of the Commission's findings relate to any of the group's ongoing activities or business practices, nor do the facts support any finding of BPB's participation in any cartel in the past," said BPB chairman Allan Gormly.
After a four-year investigation, the Commission last week fined BPB and three of its European rivals for operating a cartel that fixed the price of plasterboard. Lafarge was subjected to the biggest fine, £159.8m, and also intends to appeal, Knauf of Germany was fined £54.96m and Belgian firm Gyproc £2.77m.
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BPB said it actively co-operated with the Commission throughout its four-year investigation and is disappointed that it has rejected, without justification, much of what BPB said.
"It has not taken into account the wealth of economic evidence of vigorous price competition for market share which is inconsistent with the Commission's findings, nor the lack of any tangible effect of the supposed infringements on the markets concerned.
"Throughout the 1990s European plasterboard prices to customers fell substantially in real terms," said BPB finance director Paul Hollingworth.
"The important thing is that it hasn't affected BPB's on-going business practices," he said, pointing out a rise of 15% in group sales to £953.3m for the group's half-year results to 30 September, announced last week.
"The total amount of the fine has been charged as an exceptional item in BPB's interim accounts and will certainly not dent our pockets - we are large enough to take such a hit," said Hollingworth.
BPB's appeal may take three years to reach the European Court of First Instance, but the company feels it has a "strong case".
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