U.S., EU investigating 'collusive' dealings in rubber chemicals

GREENWICH, Conn. (Oct. 9)—Rubber chemicals manufacturer Crompton Corp. said it is cooperating with authorities in the U.S. and the European Union who have begun investigating allegations of collusion in the rubber chemicals industry. The company said it and several employees have been subpoenaed by a grand jury in the case. A Crompton spokeswoman declined to answer questions on the nature of the allegations, the location of the grand jury or the U.S. and EU agencies involved in the investigation. The company said in a prepared statement it is cooperating fully with the investigations and has launched an internal inquiry into the matter. Neither Crompton nor any of its employees has been charged with any wrongdoing concerning the investigation, which is still in its early stages, the company said. Crompton's rubber chemicals business—which it acquired in 1996 when it purchased Uniroyal Chemical Co. Inc.—reported global sales of $206 million in 2001 and claims to be the third-largest supplier of additives to the global tire and industrial rubber goods sector. The unit's products include Naugard-brand antioxidants, Flexzone antiozonants and Delac and Naugex accelerators.