Austrian timber producers Egger, Kronospan and Schweighofer, fined in Romania for fixing wood tenders

by Romanian Reporter - Wednesday, January 20, 2021 4:15 PM


Austrian timber producers Egger, Kronospan and Schweighofer, fined in Romania for fixing wood tenders

The Romanian Competition Council sanctioned 31 companies operating in the wood trading market with fines in the amount of RON129.6 million (€26.6 million). According to the regulatory authority, the investigation of multiple tenders from the period 2011-2016 revealed that in 45 of the tenders there was evidence of concerted practices for the sharing of the wood batches and/or the sources of supply.

The companies involved coordinated their behavior during the tenders through sharing of sensitive information regarding the demand for the raw material, purchasing policies, as well as the commercial strategy for the participation to certain tenders and the decision to bid or not for certain wood batches.

In this way, the companies avoided the competition between them during the tenders, which allowed them to buy wood material from the administrator of the state-owned forests Romsilva at the cheapest price possible, at the expense of the Romanian state that collected less money.

Market leaders must pay over 90% of the total fines

The largest fines were applied to the local branches of the Austrian groups operating in the wood industry: Egger (RON22.6 million - €4.6 million), Holzindustrie Schweighofer (RON51.7 million - €10.6 million), and Kronospan (RON46.4 million - €9.5 million). The three groups are also market leaders in the local wood industry, which explains the large amounts of the fines, calculated proportionally to the companies turnover for the last year.

The fines applied to the wood trading companies:

  1. ALREDIA SRL: 529.979,18 RON 
  2. ARGATU CRISTI ÎNTREPRINDERE INDIVIDUALÄ‚: 54 RON
  3. CUPAMARCU PRODCOM SRL: 1.470,25 RON
  4. EGGER ROMANIA SRL: 22.657.254,32 RON
  5. EUROMARCHET IMPEX SRL: 108.531,14 RON
  6. EXPLOSIV GROUP SRL: 160.046,26 RON
  7. FAGUS FOREST PROD SRL: 74.747,67 RON
  8. FOREST LAND SRL: 134.052,06 RON
  9. FORESTAR SA: 1.707.646,88 RON
  10. FRASINUL: 3.025.956,89 lei
  11. FUL PROD COMPANY SRL: 128.762,01 RON
  12. GELU TRANSEXPLOR SRL 305.616,30 RON
  13. GENEX COM SRL: 378.598,05 RON
  14. GILFOR SRL: 288.679,65 RON
  15. GYORGY L. TIBOR ÎNTREPRINDERE INDIVIDUALÄ‚: 32.528,48 RON
  16. H L V TRANSILVANIA SRL: 163.741,02 RON
  17. HS TIMBER PRODUCTIONS SRL: 51.788.472 RON
  18. KRONOSPAN ROMANIA SRL: 1.922.142,2 RON
  19. KRONOSPAN SEBES SA: 1.368.636,88 RON
  20. KRONOSPAN TRADING S.R.L.: 43.148.358,85 RON
  21. LIMSILVA FOREST SRL: 276.824,00 RON
  22. RAUMOND IMPEX SRL: 117.372,53 RON
  23. SILVANIA INTERNATIONAL PROD SRL: 442.898,90 RON
  24. SILVA LOGISTICS SERVICES SRL: 586.165,44 RON
  25. SIMI-CON EXPLOATARE SRL: 217,42 RON
  26. SIMICOM SRL: 198.905,99 RON
  27. SIRVA-TOUR SRL: 45.589,90 RON
  28. SORIN-ALCOS SRL: 16.701,83 RON
  29. TRANS MONICA SRL: 864 RON
  30. VALCON SRL: 1.705,61 RON
  31. VORTEX SRL 72.303,23 RON

13 companies admitted their anti-competitive prices and benefitted from a fine reduction (Alredia SRL, Egger Romania SRL, Explosiv Group SRL, Fagus Forest Prod SRL, Forest Land SRL, Genex Com SRL, HS Timber Productions SRL, Kronospan Romania SRL, Kronospan Sebes SA, Kronospan Trading S.R.L., Limsilva Forest SRL, Silvania International Prod SRL, Silva Logistics Services SRL).

See the full press release on consiliulconcurentei.ro

Photo by Aleksandar Radovanovic on Unsplash


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