The Fair Trade Commission has ordered three petrochemical firms to pay a total of 2.04 billion yen in fines for forming a polypropylene price cartel in 2000, FTC officials said Wednesday.
The watchdog fined Japan Polychem Corp. about 845 million yen, Mitsui Chemicals Inc. some 760 million yen and Chisso Corp. roughly 435 million yen, amounting to the sixth-largest fine for a case since the Antimonopoly Law was revised in 1977.
Grand Polymer Co. was among the firms accused by the FTC, but Mitsui Chemicals was punished because it absorbed Grand Polymer in April 2002.
The three firms and four other petrochemical firms, which are still contending the case with the FTC, agreed to raise polypropylene prices by 10 yen per kg in 2000, the FTC officials said.
The other four firms are Sumitomo Chemical Co., Idemitsu Petrochemical Co., Tokuyama Corp. and SunAllomer Ltd., formerly Montell SDK Sunrise Ltd.
Polypropylene, a synthetic resin produced from naphtha, is a plastic material used in a wide range of home electrical appliances, auto parts and wrapping film.
In May 2001, the FTC ordered the seven firms to end a polypropylene price cartel practice that allegedly violated the Antimonopoly Law.
The companies account for almost all production and sales of polypropylene in Japan.