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Brick manufacturers charged for cartel conduct

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Bricks - [https://s3.eu-central-1.amazonaws.com/centaur-wp/periodliving/prod/content/uploads/2012/06/brick-laying-mortar-red-bricks.jpg] Bricks - [https://s3.eu-central-1.amazonaws.com/centaur-wp/periodliving/prod/content/uploads/2012/06/brick-laying-mortar-red-bricks.jpg]

South African manufacturer of bricks‚ pavers and concrete blocks Corobrik and five other brick makers have been charged for price fixing and division of markets.

The Competition Commission of South Africa launched an investigation into the companies in April for contravening the Competition Act.

The companies are Corobrik‚ Era Bricks‚ Eston Brick and Tile‚ De Hoop Brickfields‚ Clay Industry CC and Kopano Brickworks.

"Corobrik entered into separate bilateral agreements with each of the above companies in terms of which they agreed to divide the market by allocating specific products and/or customers in contravention of ... the Competition Act‚" said a statement by commission spokesman Sipho Ngwema.

"In addition‚ Corobrik and Era Bricks agreed to fix prices at which they sold bricks‚ pavers and blocks."

The commission found that Era Bricks agreed not to supply its products directly to customers in competition with Corobrik‚ but instead sell directly to Corobrik‚ which then sold them to customers in the open market.

Era Bricks agreed not to manufacture or sell any bricks other than the types it was manufacturing and selling to Corobrik.

Corobrik was found to have concluded separate bilateral distributorship agreements with Eston Brick‚ Clay Industry‚ De Hoop and Kopano‚ wherein each of them agreed not to supply their products directly to customers in competition with Corobrik.

Instead‚ they supplied their products to Corobrik‚ which then sold directly to customers.


 

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