Brazilian steel giants fined for price fixing

Brazilian steel giants fined for price fixing

Gerdau SA and two other Brazilian steelmakers will pay seven percent of their 1999 gross revenues after Brazil's antitrust regulator found that the companies conspired to fix prices. Gerdau, Latin America's largest steel producer, will have to pay Real 2.26 billion based on 1999 gross sales. The other two steelmakers involved are Belgo-Mineira, controlled by Arcelor SA, the world's second largest steelmaker, and Barra Mansa, controlled by Grupo Votorantim, Brazil's largest industrial group. Revenue figures are not available for those companies. According to the regulation agency, the steelmakers set up a system of fake discounts to control the market and prevent competition. The regulator's board voted four-to-one in favor of fining the three steel giants. Gerdau, Belgo-Mineira, and Barra Mansa, all produce long-steel products such as concrete reinforcing rod, wire, nails and I-beams used primarily in the construction industry. The companies also make shaped products used for electricity transmission towers, auto frames, and agricultural equipment.