2003/382/EC: Commission Decision of 8 December 1999 relating to a proceeding under Article 81 of the EC Treaty (Case IV/E-1/35.860-B seamless steel tubes) (notified under document number C(1999) 4154) (Text with EEA relevance)

• Published date: 06 June 2003
• Official Gazette Publication: Gazzetta ufficiale dell’Unione europea, L 140, 06 giugno 2003,Journal officiel de l’Union européenne, L 140, 06 juin 2003,Diario Oficial de la Unión Europea, L 140, 06 de junio de 2003

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2003/382/EC: Commission Decision of 8 December 1999 relating to a proceeding under Article 81 of the EC Treaty (Case IV/E-1/35.860-B seamless steel tubes) (notified under document number C(1999) 4154) (Text with EEA relevance)

Official Journal L 140 , 06/06/2003 P. 0001 - 0029

Commission Decision

of 8 December 1999

relating to a proceeding under Article 81 of the EC Treaty

(Case IV/E-1/35.860-B seamless steel tubes)

(notified under document number C(1999) 4154)

(Only the English, French, German and Italian versions are authentic)

(Text with EEA relevance)

(2003/382/EC)

THE COMMISSION OF THE EUROPEAN COMMUNITIES,

Having regard to the Treaty establishing the European Community,

Having regard to Council Regulation No 17, first Regulation implementing Articles 85 and 86 of the Treaty of 6 February 1962(1), as last amended by Regulation (EC) No 1/2003(2), and in particular Articles 3 and 15 thereof,

Having regard to the Commission Decision of 20 January 1999 to initiate proceedings in this case,

Having given the firms concerned the opportunity to make known their views on the objections raised by the Commission,

Having consulted the Advisory Committee on Restrictive Practices and Dominant Positions,

Whereas:

I. THE FACTS

A. Procedure

(1) On 1 and 2 December 1994, acting under a Commission decision of 25 November 1994, Commission officials and representatives of the competition authorities of the Member States concerned carried out investigations under Article 14(3) of Regulation No 17 at a number of undertakings, including British Steel plc, Mannesmannröhren-Werke AG and Vallourec SA, to which this decision is addressed. It was the Commission's intention to examine the existence of a possible infringement of Article 85 of the EC Treaty (now Article 81 EC).

(2) The investigations were carried out simultaneously, together with officials from the EFTA Surveillance Authority ("ESA"), following a request pursuant to Article 8(3) of Protocol 23 to the Agreement on the European Economic Area ("EEA Agreement") to investigate a possible infringement of Article 53 of that Agreement.

(3) By decision of 6 December 1995, the ESA, pursuant to Article 10(3) of Protocol 23 to the EEA Agreement, forwarded its dossier to the Commission, since it considered that the documents collected during the investigations showed that intra-Community trade was being affected.

(4) Further investigations in accordance with Article 14(2) of Regulation No 17 were carried out between September 1996 and December 1997 at Vallourec SA, Dalmine SpA and Mannesmannröhren-Werke AG. Subsequently, requests for information under Article 11 of Regulation No 17 were sent to all the undertakings to which this Decision is addressed.

(5) When Dalmine SpA, Siderca SAIC and Groupe Techint refused to supply some of the information requested, a decision pursuant to Article 11(5) of Regulation No 17, dated 6 October 1997, was sent to them. Siderca SAIC and Dalmine SpA appealed against the decision to the Court of First Instance of the European Communities. Dalmine's appeal was rejected as clearly inadmissible by order dated 24 June 1998.

(6) Mannesmannröhren-Werke also refused to supply some of the information requested. A decision in accordance with Article 11(5) of Regulation No 17 was sent to it, dated 15 May 1998.

(7) On 20 January 1999 the Commission sent a statement of objections to the addressees of this decision and to Siderca and Tubos de Acero de México.

(8) The firms had access between 11 February and 22 April 1999 to the file which the Commission had compiled on the case. In addition, by letters dated 11 May 1999, the Commission sent copies of the investigation decisions of November 1994 to the undertakings which were not addressees of those decisions and which, consequently, had not had access to them.

(9) Having replied in writing to the statement of objections, all the addressees of this decision took part in the hearing on the case, which was held on 10 June 1999.

B. Parties

1. Mannesmannröhren-Werke

(10) Mannesmannröhren-Werke AG ("MRW") is a company constituted under German law, 79 % owned by Mannesmann AG. The latter is a diversified German group whose business covers the fields of mechanical engineering, processing industry engineering, information technology, electronics, the manufacture of vehicle parts, the production, processing and marketing of steel products and the provision of related services. The remaining 21 % of MRW is held by Thyssen Stahl AG, a German steel producer. MRW is the portfolio holding company for all Mannesmann's pipe and tube production activities. It operates in the production of pipes and tubes and the production of steel and input products for pipes and tubes, and in the steel processing sector.

(11) In the pipe and tube production sectors, MRW has holdings in the following firms: Mannesmannrohr GmbH (100 %), Mannesmannröhren-Werke Sachsen GmbH (100 %), Mannesmann SA - Brazil (76 %), Mannesmann Sümerbank Boru Endüstrisi TAS - Turkey (60 %), Europipe GmbH (50 %), MHP Mannesmann Hoesch Präzisrohr GmbH (50 %), Röhrenwerk Gebr. Fuchs GmbH (50 %), International Drill Pipe Assembly SA (49 %), and DMV Stainless BV (33,33 %). In addition, MRW holds 100 % of the capital of Mannesmann Handel GmbH, which is responsible for pipe and tube distribution and marketing in the Mannesmann group.

(12) From 1 October 1997, MRW's activities in the seamless pipe and tube sector have been transferred to Vallourec & Mannesmann Tubes, 45 % of whose capital is owned by MRW.

(13) MRW controls Vallourec SA following its purchase of Usinor's holding in the company. MRW's turnover in 1998 was DEM 4570 million (approximately EUR 2321 million).

2. Vallourec SA

(14) Vallourec SA ("Vallourec", sometimes referred to as "VLR" in the documents) is a company constituted under French law. Through it subsidiary, Valtubes, it operates in the production and processing of pipes and tubes and related products; through its subsidiary, Sopretac, it manufactures and processes other ferrous materials. The main subsidiaries of Valtubes are Vallourec Industries, Valti, Vallourec Précision Étirage, Vallourec Précision Soudage, Valinox Welded, DMV Stainless BV (33,33 %), Vallourec Oil & Gas, International Drill Pipe Assembly SA (51 %), Tubular Industries Scotland Ltd, and Valmont. Vallourec's turnover in 1998 was FRF 14867 million (approximately EUR 2252 million).

(15) On 3 June 1997, the Commission authorised the takeover of Vallourec by MRW and the amalgamation of their seamless pipe and tube production. From 1 October, those activities were allocated to Vallourec & Mannesmann Tubes, in which Vallourec has a 55 % stake.

3. British Steel Limited

(16) Following the merger on 6 October 1999 between British Steel plc and Koninklijke Hoogovens NV, the former became a subsidiary wholly owned by Corus Group plc. This entailed changing both its name and legal form. On 8 October 1999, British Steel plc became British Steel Limited (hereinafter "BS"). BS is one of the main European steel producers. Its principal activities are the production and distribution of ECSC products. It also produces welded pipes and tubes. Up to 1995, BS produced hot-rolled, finished seamless pipes and tubes. Today, it restricts itself to marketing seamless pipes and tubes via its subsidiary Tubular Supply Services Limited (TSSL) and to cold-finishing pipes and tubes through its subsidiary Cold Drawn Tubes Limited. BS's turnover in 1998 was GBP 6228 million (approximately EUR 9207 million).

4. Dalmine SpA

(17) Dalmine SpA ("Dalmine") used to be the subsidiary of Ilva (the main Italian steel producer) responsible for the production of seamless pipes and tubes. On 27 February 1996, Techint, a subsidiary of Siderca, acquired control of Dalmine. Apart from Dalmine, the firms in the Techint group which operate in the seamless pipe and tube sector are Siderca SAIC (Argentina) and Tubos de Acero de México SA (Mexico) ("Tamsa"). These three firms present themselves jointly under the name of DST Pipes. Together they produce more than 2 million tonnes of steel pipes and tubes. OCTG (oil country tubular goods, see recital 29) are Tamsa's speciality, and account for the greater part of Siderca's production, while Dalmine specialises in line pipe and engineering pipes and tubes. Dalmine manufactures and sells mainly seamless pipes and tubes, but, through its subsidiary Tubificio di Piombino srl, also produces small-diameter welded tubes. Dalmine's production capacity for seamless pipes and tubes is 930000 t/yr. Its turnover in 1998 was ITL 1300082 million (approximately EUR 669 million).

5. Sumitomo Metal Industries Limited

(18) The Japanese firm Sumitomo Metal Industries Limited ("SMI") is one of the 20 leading steel producers in the world. It manufactures welded and seamless steel pipes and tubes. SMI is the largest producer of seamless pipes and tubes in Japan. SMI's turnover in 1998 was JPY 1469418 million (approximately EUR 10505 million).

6. Nippon Steel Corporation

(19) The Japanese firm Nippon Steel Corporation ("NSC") is the world's second-largest steel producer. It manufactures welded and seamless steel pipes and tubes. Its turnover in 1998 was JPY 1975062 million (approximately EUR 13489 million).

7. Kawasaki Steel Corporation

(20) The Japanese firm Kawasaki Steel Corporation ("KSC") is one of the 15 leading steel producers in the world. It manufactures welded and seamless steel pipes and tubes. Its turnover in 1998 was JPY 836240 million (approximately EUR 5711 million).

8. NKK Corporation

(21) The Japanese firm NKK Corporation ("NKK") is one of the world's 10 leading steel producers. It manufactures welded and seamless steel pipes and tubes. Its turnover in 1998 was JPY 1013636 million (approximately EUR 6923 million).

C. Market

1. Steel pipes and tubes in general

(22) The steel pipe and tube sector...