Saturday, July 6, 2013

Tetra Pak among foreign firms facing probe in China for malpractices

Bombay News.Net Friday 5th July, 2013

China is investigating global packaging giant Tetra Pak for "abusing" its dominant market role, an official said Friday, the latest in a series of probes aimed at foreign companies.

The State Administration for Industry and Commerce (SAIC) has launched the nationwide investigation, ChinaNews.com reported on its website citing unidentified sources.

The head of SAIC Zhang Mao gave no specific details of the inquiry, but said it covered 20 provinces and cities

"The administration has filed a case against Tetra Pak on suspicion of abusing its market controlling position," Zhang Mao was quoted as saying at a meeting, according to a transcript posted online.

Tetra Pak China, whose parent is headquartered in Switzerland, confirmed a request for information by the government and said it was cooperating, reported AFP.

Part of the private Tetra Laval group, which is owned by the Swedish Rausing family, Tetra Pak has more than 23,000 employees and its packages are available in 170 countries.

Tetra Pack has had presence in China since 1972 and its clients include China's biggest milk and beverage producers including China Mengniu Dairy Co Ltd, Inner Mongolia Yili Industrial Co and Uni-president China Holdings Ltd.

The company has a research centre in Shanghai and packaging material plants in several Chinese cities.

News of the investigation comes within days of media reports that another Chinese government agency has launched an "anti-monopoly" investigation into several foreign baby formula makers over high prices.

The National Development and Reform Commission (NDRC), the top economic planning agency, is investigating six milk-powder producers including Nestle and Danone, for possible price-fixing and anti-competitive behavior.

It is targeting Nestle unit Wyeth Nutrition, France's Danone, Mead Johnson Nutrition, Abbott Laboratories and Dutch firm Royal FrieslandCampina.

Both Nestle and Danone have responded by announcing plans to cut prices of their products.

Following a 2008 scandal in which tainted baby formula killed six children and sickened more than 300,000, Chinese consumers prefer foreign brand dairy products.

Tetra Pak's products include packaging for milk. The company has supplied Chinese dairy giant Mengniu and participated in a programme to boost sustainable dairy farming in China, company statements showed..

The NDRC also said this week it would investigate 60 pharmaceutical companies over their pricing, including several joint ventures with foreign firms, among them Britain's GlaxoSmithKline.

Source: http://www.bombaynews.net/index.php/sid/215654618/scat/3a8a80d6f705f8cc

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