Price-fixing Glass Makers Fined

Four of the world's biggest glass manufacturers have been fined a total of 486.9m euros ($717.5m; £348.2m) for illegally co-ordinating price rises. The firms are Guardian of the US, Pilkington, which is the UK unit of Nippon Sheet Glass, Saint-Gobain of France and Belgium's Glaverbel. The European Commission said the firms had raised or stabilised prices in 2004 and 2005 through illicit contacts.

Between them they control 80% of Europe's market for flat glass.

Neelie Kroes, the EU's competition commissioner, said that the EU would 'not tolerate companies cheating consumers and business customers by fixing prices and depriving them of the benefits of the single market'.

Guardian was fined 148m euros, Pilkington 140m euros and Saint-Gobain 133.9m euros. Asahi received the smallest fine of 65m euros because it had co-operated with the investigation.

Guardian Industries' group vice president, Peter Walters, said that the firm was 'extremely shocked' by the decision. 'We don't believe the facts justify the outcome as it pertains to Guardian,'he said.

And a Saint Gobain spokeswoman said the company "took note" of the decision. She added the firm was braced for an even larger fine from an EU decision on the price of car windows.

• Nippon Sheet Glass Co., Ltd. (‘the Company’) confirms that, as stated in the Commission's press release dated 28th November 2007, the European Commission has announced a Decision to levy a civil fine of Euro 140 million ( JPY 22.5 billion ) against Pilkington Group Limited (‘Pilkington’), a subsidiary of the Company. The fine follows an investigation, previously announced, into a number of glass manufacturers in the European building products glass sector, including Pilkington, relating to infringement of competition rules.

Pilkington also received, on 20th April 2007, a Statement of Objections with regard to the European automotive glass sector. The outcome of that case is still outstanding.

As announced on 22nd May 2007, the Company has made a provision for the estimated fine payment for building products and automotive glass. Consequently, the Company does not expect to have to make a further Revision of Operating Result Outlook to take account of this development.