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February 8, 2023

Predatory pricing accusations on building materials market

Building material manufacturer Prefab has recently filed a lawsuit against Lafarge Romania over ‘successive price modifications to the detriment of Romanian producers’, demanding 5 M RON in damages, according to yesterday’s release by the company.

‘Lafarge has unilaterally revised prices several times during 2008, up that is. Prefab considers the cement market in Romania has been and is affected and controlled by tacit agreements between cartels surrounding Lafarge, which practice an abusive price policy,’ according to Irina Voicu law firm, which represents Prefab in court. According to the company, successive predatory pricing took place amid economic crisis, when prices for construction materials were tumbling down. ‘By treating Prefab as a captive company, Lafarge brought the company damages equal to 5,034,803.82 RON,’ Prefab executives say. Prefab also submitted the Competition Council a claim against Lafarge.

Lafarge Ciment (Romania) flatly rebuffed Prefab’s accusations. ‘We confirm this litigation being in place, with the first date in court being set for April 30, 2010. We express out surprise over how and when this release was made, as the litigation is in incipient stage, of taking note of the lawsuit opened by Prefab against our enterprise. We are also displeased about the manner and tone whereby Prehab is trying to legitimize its claims against Lafarge Ciment (Romania) SA, which we entirely reject, with all the relevant arguments to be presented before the court,’ a Lafarge press statement reads. The French group subsidiary considers the Prehab announcement being aimed at ‘futile tensions’ being created.

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