FOR IMMEDIATE RELEASE                                          AT
TUESDAY, JUNE 25, 1996                             (202) 616-2771
                                               TDD (202) 514-1888

                                 
      JUSTICE DEPARTMENT TAKES ACTION TO RESTORE COMPETITION
     TO THE $100 MILLION NORTH AMERICAN LAMINATED TUBE MARKET

   Toothpaste One Of The Common Products Packaged in Such Tubes


     WASHINGTON, D.C. -- The Department of Justice today moved to
break up an exclusive deal between two of the leading producers
of toothpaste tubes and the equipment used to make these tubes. 
Under the deal the two companies agreed not to compete with each
other for business in North America.
     In the deal between the Chicago-based American National Can
Company and the Swiss firm KMK Maschinen AG, KMK agreed to stop
making or selling laminated tubes in the United States and gave
American National Can exclusive rights to license KMK's
technology in North America.  In return, American National Can
agreed to get out of the tube-manufacturing equipment business
altogether.   The deal eliminated a major foreign producer of
laminated tubes from the U.S. market.
     The Department's action against American National Can and
KMK was filed in the U.S. District Court for the District of 
Columbia.  At the same time, the Department filed a proposed
consent decree that would settle the case against both companies,
terminating the exclusive deal between them, and allowing KMK to
reenter the North American market.
     Anne K. Bingaman, Assistant Attorney General in charge of
the Justice Department's Antitrust Division, said, "This
international settlement should restore competition to the
laminated tube industry and lead to lower prices for consumers of
toothpaste and many pharmaceutical products."
     Laminated plastic tubes are squeezable and collapsible
tubular containers used to package virtually all toothpaste as
well as many pharmaceutical products.  Over one billion of these
tubes are produced annually in North America.  American National
Can, a Delaware corporation with its principal place of business
in Chicago is by far the dominant manufacturer of laminated
plastic tubes in North America, with annual U.S. sales of more
than $60 million.  
     KMK is a Swiss corporation whose U.S. operations were
conducted through Swisspack, a New Jersey corporation.  Sales of
laminated tubes in North America total about $100 million a year.
     This case grew out of events beginning in 1987.  Before
that, the two companies used their own tube-making equipment and
technology in the United States to manufacture finished tubes and
sell them, in competition with each other, to U.S. buyers.  
     The complaint alleges that the 1987 deal eliminated KMK both
as a competing seller of tubes and as a potential independent
source of technology and equipment that could be used by another
current or future manufacturer of laminated tubes.  The complaint
further alleges that at about the same time, American National
Can stopped making tube manufacturing equipment.
     Some years later, KMK was purchased by a new owner that
wanted to enter the North American market.  It then brought the
agreements to the attention of the Department and cooperated in
the subsequent investigation.
     The proposed settlement would increase the sources of tube-
making equipment and technology by terminating the exclusive
licensing agreement between the two companies.  It would also
enable KMK to re-enter the laminated tube market in North
America, either by manufacturing tubes itself or by licensing its
technology and selling its tube-making equipment to other
companies.  
     As required by the Tunney Act, the proposed consent decree
will be published in the Federal Register, together with the
Department's competitive impact statement.  Any person may submit
written comments concerning the proposed consent during the 60-
day comment period to Mary Jean Moltenbrey, Chief, Civil Task
Force, Antitrust Division, U.S. Department of Justice, 325 7th
Street, N.W., Room #300, Washington, D.C. 20530. 
     At the conclusion of the 60-day comment period, the U.S.
District Court for the District of Columbia may enter the consent
decree upon finding that it serves the public interest. 
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