Swiss specialty chemical company Clariant has forcefully rejected a massive new legal claim brought against it by Dow Europe. In an ad hoc announcement issued from its Muttenz headquarters, the sustainability-focused firm confirmed it is one of four companies targeted in a damages lawsuit filed with the regional court of Dortmund, Germany.
The legal challenge seeks roughly €1.1 billion in damages. In a statement to Reuters, Dow confirmed it filed the claim to recover “significant losses” suffered by its European business, alleging that the defendants engaged in anti-competitive conduct that artificially depressed ethylene prices. Ethylene is a core chemical building block used widely in the manufacturing of plastics and polymers.
The lawsuit stems from a 2020 ruling by the European Commission, which fined Clariant, Mexico’s Orbia, and U.S.-based group Celanese a combined total of €260 million. The regulatory watchdog penalized the companies for colluding to keep the purchase price of ethylene as low as possible, effectively rigging the purchasing market.(euronext)
While Clariant did not explicitly name the other three companies targeted in Dow’s new damages lawsuit, it made its defense strategy clear. The company stated that it firmly rejects Dow Europe’s allegations and will adamantly defend its position in the upcoming proceedings. Clariant added that it has gathered substantiated economic evidence demonstrating that the conduct of the cartel parties ultimately produced no actual effect on the market.