IN THE UNITED STATES
DISTRICT COURT
FOR THE EASTERN DISTRICT OF PENNSYLVANIA
__________________________________________
UNITED STATES OF AMERICA
v.
SGL CARBON AKTIENGESELLSCHAFT and
ROBERT J. KOEHLER,
Defendant.
__________________________________________
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| Criminal No. 99-244
Filed: 05/04/99
Violation: 15 U.S.C. . 1 |
INFORMATION
The United States of America, acting through its attorneys, charges:
I
DESCRIPTION OF THE OFFENSE
- SGL Carbon Aktiengesellschaft (hereinafter SGL AG) and Robert J. Koehler, are made
defendants on the charge stated below.
- Beginning at least as early as July 1992 and continuing until at least June 1997, the exact
dates being unknown to the United States, the defendants SGL AG and Robert J. Koehler and
co-conspirators entered into and participated in a combination and conspiracy to suppress and
eliminate competition by fixing the price and allocating the volume of graphite electrodes sold in
the United States and elsewhere. The combination and conspiracy engaged in by the defendants
and co-conspirators was in unreasonable restraint of interstate and foreign trade and commerce
in violation of Section 1 of the Sherman Act (15 U.S.C. . 1).
- The charged combination and conspiracy consisted of a continuing agreement,
understanding, and concert of action among the defendants and co-conspirators, the substantial
terms of which were:
- to agree to fix and maintain prices and to coordinate price increases for the sale
of graphite electrodes in the United States and elsewhere; and
- to agree to allocate among the corporate conspirators the volume of sales of
graphite electrodes in the United States and elsewhere.
- For the purpose of forming and carrying out the charged combination and conspiracy, the
defendants and co-conspirators did those things that they combined and conspired to do,
including, among other things:
- participating in meetings and conversations in the Far East, Europe, and the
United States to discuss the prices and volume of graphite electrodes sold in the United
States and elsewhere;
- agreeing, during those meetings and conversations, to charge prices at certain
levels and otherwise to increase and maintain prices of graphite electrodes sold in the
United States and elsewhere;
- agreeing, during those meetings and conversations, to eliminate discounts
from the fixed price of graphite electrodes offered to customers in the United States
and elsewhere;
- agreeing, during those meetings and conversations, to allocate among the
corporate conspirators the approximate volume of graphite electrodes to be sold by
each corporate conspirator in the United States and elsewhere;
- agreeing, during those meetings and conversations, to divide the world market
among themselves and to designate on a region-by-region basis, including the United
States, the conspirator who would fix the price that others would follow in
that region;
- agreeing, during those meetings and conversations, to restrict graphite electrode
producing capacity among the corporate conspirators;
- agreeing, during those meetings and conversations, to restrict non-conspirator
companies' access to certain graphite electrode manufacturing technology;
- discussing, during those meetings and conversations, methods to conceal the
agreement, including the use of code names by the corporate conspirators;
- exchanging sales and customer information for the purpose of monitoring and
enforcing adherence to the above- described agreement; and
- issuing price announcements and price quotations in accordance with the
agreements reached.
II
BACKGROUND
- Graphite electrodes are large columns used primarily in the production of steel in electric
arc furnaces, the steel-making technology used by all "mini-mills," and for refining steel in ladle
furnaces. As conductors of electricity, graphite electrodes generate sufficient heat to melt steel
scrap and further refine molten steel into a finished product. Nine electrodes, joined in columns
of three each, are used in the average electric arc furnace to melt scrap steel. Because of the
intensity of the melting process, approximately one electrode is consumed every eight hours.
- Total sales of graphite electrodes in the United States are estimated at approximately $500
million for 1996 and approximately $1.7 billion during the term of the charged conspiracy.
III
DEFENDANTS AND CO-CONSPIRATORS
- During the period covered by this Information, SGL AG was a corporation organized and
existing under the laws of Germany with its principal place of business in Wiesbaden, Germany.
During the relevant period, SGL AG was engaged in the sale of graphite electrodes to customers
in the United States and in foreign countries through its subsidiaries. During the period covered
by this Information, Robert J. Koehler was engaged in the business of selling graphite electrodes
to customers in the United States and foreign countries in his capacity as Chief Executive
Officer and Chairman of the Executive Committee of SGL AG.
- Various corporations and individuals not made defendants herein participated as
co-conspirators in the offense charged herein and performed acts and made statements in
furtherance thereof.
- Wherever in this Information reference is made to any act, deed, or transaction of a
corporation, the allegation means that the corporation engaged in the act, deed, or transaction by
or through its officers, directors, agents, employees, or representatives while they were actively
engaged in the management, direction, control, or transaction of its business or affairs.
IV
TRADE AND COMMERCE
- During the period covered by this Information, the defendants and co-conspirators sold a
substantial quantity of graphite electrodes in a continuous and uninterrupted flow of interstate
and foreign trade and commerce to customers located in states or countries other than the states
or countries in which the graphite electrodes were produced.
- During the period covered by this Information, the activities of the defendants and
co-conspirators that are the subject of this Information were within the flow of, and substantially
affected, interstate and foreign trade and commerce.
V
JURISDICTION AND VENUE
- The combination and conspiracy charged in this Information was carried out, in part,
within the Eastern District of Pennsylvania within the five years preceding the filing of this
Information.
ALL IN VIOLATION OF TITLE 15, UNITED STATES CODE, SECTION 1.
Dated:
_______________/s/________________  
JOEL I. KLEIN
Assistant Attorney General
_______________/s/________________
GARY R.
SPRATLING
Deputy Assistant Attorney General
_______________/s/________________
JAMES M. GRIFFIN
Director of Criminal Enforcement
Antitrust Division
U.S. Department of Justice
_______________/s/________________
MICHAEL R. STILES
United States Attorney for the
Eastern District of Pennsylvania |
_______________/s/________________
ROBERT E.
CONNOLLY
Chief, Philadelphia Office
_______________/s/________________
WENDY BOSTWICK NORMAN
LUCY P. MCCLAIN
ROGER L. CURRIER
JOSEPH MUOIO, JR.
Attorneys, Antitrust Division
U.S. Department of Justice
Philadelphia Office
The Curtis Center, Suite 650W
170 S. Independence Mall West
Philadelphia, PA 19106
Tel.: (215) 597-7401
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