DuPont accused of price fixing in Canada

By Christopher Cundy 14/02/2006

Engineering polymer supplier says claims are ‘baseless’.

14 February 2006 – A Canadian moulder has begun legal action against DuPont, claiming the engineering polymer supplier has been fixing the prices of Delrin and Zytel resins in conspiracy with Tier 1 automotive suppliers.

Lawyers representing Axiom Plastics have filed a class action lawsuit on behalf of all Tier 2 plastics processors in Canada. In a statement posted to the Ontario courts in December, it alleges that DuPont linked with Tier 1 suppliers so that Tier 2 moulders were forced the to use DuPont materials.

According to the claim, DuPont would fix prices for its resins with its authorised distributors. Tier 1 suppliers would monitor the purchase volumes among Tier 2 suppliers and anyone suspected of buying from outside the authorised routes would be reported to DuPont. For their troubles, the Tier 1 suppliers would receive a kickback from DuPont.

DuPont has rejected completely the claims contained in the action initiated by Axiom Plastics. In a statement the company said: “Quite simply, the claims are baseless. The picture of DuPont that they present is contrary to the facts, and does not reflect the manner in which the company and our employees strive to conduct business. We intend to defend ourselves vigorously.”