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South Africa: Ton Scrap fined after price-fixing admission

By  |  May 5, 2016
South Africa: Ton Scrap fined after price-fixing admission

Scrap metal dealer, Ton Scrap, has been fined R3.5 million after admitting to contravening the Competition Act by agreeing with its competitors to fix purchasing prices of certain ferrous scrap metals and to allocate suppliers among the large scrap metal merchants.

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    The Competition Tribunal yesterday confirmed a settlement agreement reached between Ton Scrap, which now trades as Nieuwco, and the Competition Commission in terms of which the firm would pay the fine, which amounts to 5 percent of its annual turnover for ferrous scrap metal for the financial year to February 2005.

    The commission’s Korkoi Ayayee told the tribunal hearing that the commission had initiated a complaint in August 2006 against the Reclamation Group, SA Metal & Machinery Company (SAM), National Scrap Metal and Cape Town Iron and Steel Works.

    Ayayee said the scope of this investigation was expanded and the commission conducted search and seizure operations at the premises of the Reclamation Group in Johannesburg, Port Elizabeth and Durban in July 2007.

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