FOR IMMEDIATE RELEASE                                          AT
WEDNESDAY, JULY 30, 1997                           (202) 616-2771
                                               TDD (202) 514-1888

  
JUSTICE DEPARTMENT APPROVES PROPOSAL BY CONSTRUCTION TRADE ASSOCIATION
       TO REQUIRE MEMBERS TO COMPLY WITH CERTIFICATION STANDARDS
 

     WASHINGTON, D.C. -- The Department of Justice's Antitrust
Division approved a proposal today by a construction trade
association that would require all of its manufacturer members to
comply with standards governing the way they reinforce concrete
using high strength steel wires.  

     The Department said that since the association's
certification program won't exclude other companies from
competing for construction contracts, the proposal will not
unreasonably restrict competition.  The Department also said that
the proposal may have procompetitive effects if the conduct
results in improved quality and reputation of the products and 
systems the association promotes. 

     The Post-Tensioning Institute (PTI), a trade association of
firms and individuals which is involved in the construction of
prestressed concrete structures, encourages the use of the
"unbonded post-tensioning" construction technique.  PTI will not
take any action designed to persuade others not to do business
with firms that choose not to join PTI or satisfy its plant
certification requirements.

     The Department's position was stated in a business review
letter to counsel from Joel I. Klein, Acting Assistant Attorney
General in charge of the Antitrust Division. 
 
     Klein stated that "the proposal would not appear to have the
effect of facilitating price collusion or reducing output."  He
also noted that because neither "membership in PTI nor compliance
with its plant certification program is necessary to compete
successfully for construction contracts" denial of membership to
those firms that do not meet PTI's standards would not
unreasonably restrict competition.

     The unbonded post-tensioning technique favored by PTI refers
to a method of reinforcing concrete or other structural elements
by utilizing high strength steel wires in the concrete.  The
wires are stressed to a predetermined force by hydraulic jacks at
one end and are locked off at both ends by anchorage devices. 
The wires are encased within a corrosion inhibiting coating
and/or sheathing that prevents the wire from bonding with the
concrete, and allows the wire to move freely during the
tensioning process even after the concrete has set.

     In order to improve the reputation of unbonded post-
tensioning systems and promote its utilization over competing
systems or materials, PTI has created a plant certification
program that independently inspects and certifies the plant
operations of companies that produce certain types of unbonded
post-tensioned products.  Currently, the certification program is
voluntary and open to non-members as well as members of PTI. 
Certification is administered by PTI, but executed by an agency
independent of PTI and its members.

     Because of the complexity of manufacturing, assembling,
storing and shipping unbonded post-tensioned system components,
there has been some variation in the quality of unbonded post-
tensioned products that has affected the industry's efforts to
compete with other systems.  PTI hopes to boost this quality and
enhance the reputation of these materials through its proposal. 
All members of PTI will have to meet the standards set forth as a
prerequisite for manufacturer membership.  Non-members, however,
would continue to be eligible for certification.

     Under the Department of Justice's business review procedure,
an organization may submit a proposed action to the Antitrust
Division and receive a statement as to whether the Division will
challenge the action under the antitrust laws.

     A file containing the business review request and the
Department's response may be examined in the Legal Procedure Unit
of the Antitrust Division, Suite 215, Liberty Place, 325 7th
Street, N.W., Department of Justice, Washington, D.C. 20004. 
After a 30-day waiting period, the documents supporting the
business review will be added to the file.
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