FLSmidth penalty on former subsidiary has been upheld

The European Court of Justice has ruled that the penalty imposed on FLSmidth & Co. A/S in March 2012 is upheld at €14.45 million.

As announced in 2005, the European Commission ruled that FLSmidth & Co. A/S and the subsidiary company FLS Plast A/S were to be held partly liable with regards to a cartel penalty on a formerly FLSmidth-owned French company then named Silvallac S.A (later Trioplast Wittenheim).

FLSmidth has appealed the cartel decision twice, most recently in March 2012 where the General Court reduced FLSmidth & Co. A/S' and the subsidiary company FLS Plast A/S' partly liability for this penalty. The liability was reduced from €15.3 million to €14.45 million.

The judgement concerning FLS Plast A/S is still pending.

The Group's guidance for 2014 will not be affected by the penalty.

Adapted from FLSmidth press release by Louise Fordham

Read the article online at: https://www.worldcement.com/europe-cis/30042014/flsmidth_penalty_on_former_subsidiary_upheld_115/