AN INTERNATIONAL anti-trust investigation into the global compressor market has embroiled Danish manufacturer Danfoss and US-based Tecumseh Products.
Enquiries by the US Justice Department, the European Commission and Brazilian authorities are underway as a result of growing suspicions of a global compressor market cartel to fix prices.
It is not clear how many companies are involved in the investigations and the European Union (EU) has not announced which business it has raided. Subpoenas have been issued in the US, Denmark, Germany and Brazil and possibly in others.
Danfoss, one of Denmark’s largest companies, has confirmed that is has had surprise visits by authorities at its offices in Nordborg, Denmark and Flensburg, Germany as well as at several facilities in US.
Tecumseh Products has been subpoenaed by the US Justice Department and the Brazilian Ministry of Justice. The company says it plans to comply with the order. It also says it is not expecting the investigations to impact on its ongoing operations.
Danfoss’ Chief Reputation Officer, Ole Daugbjerg, says senior management has no involvement with any price fixing collusions.
He says the company is, “100% certain that the top management is completely unaware of any possible entrance into such an agreement.”
According to Daugbjerg, the manufacturer would be “very surprised” if any individual employees had entered into a cartel agreement. All staff have been urged to cooperate fully with the authorities.
The company employs 23,000 people around the world and has 61 factories in 25 countries.
These events come after the EU decided not to investigate allegations earlier in February that Chinese companies were dumping compressors into the European market at below-market rates.
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