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Klöckner Pentaplast of Canada (KPC) & Haycore Canada Inc.
Lead NCPCanada
Supporting NCP(s)
DescriptionSpecific instance alleging a non-observance of the OECD Guidelines.
Theme(s)General policies, Disclosure, Combating bribery, bribe solicitation and extortion, Consumer interests, Competition
Date29 Jul 2022
Host country(ies)Canada
SourceBusiness
Industry sectorManufacturing
StatusNot accepted
Summary

Read the Final Statement published 28 July 2023: English | French


On 29 July 2022, Haycore Canada Inc., a supplier of post-consumer plastics (PCPs) in Canada, submitted a specific instance to the Canadian NCP alleging that Klöckner Pentaplast of Canada (KPC), part of the Klöckner Pentaplast Group, an MNE that recycles PCPs into new packaging products, had not observed the General Policies (Chapter II), Disclosure (Chapter III), Combating Bribery, Bribe Solicitations and Extortion (Chapter VII), Consumer Interests (Chapter VIII), and Competition (Chapter X) provisions of the Guidelines. Issues related to alleged ‘market price distortions’ by KPC as they had engaged two PCP suppliers soliciting the same sources of PCPs without imposing a price limitation, allegedly inflating prices for the submitters. The submitter further suggested that the procurement approach raised the possibility that KPC’s employees were involved in a ‘corrupt arrangement’ to take advantage of the second supplier. The submitter alleged that KPC delayed payments and subsequently stopped orders after the submitter raised related concerns.

The NCP held separate meetings and exchanges with both parties, in accordance with its initial assessment procedures. On 28 July, the NCP published a final statement concluding that the issues raised did not warrant further examination. The NCP concluded that the issues raised were either not material to the Guidelines or could not be sufficiently substantiated, and further examination would be unlikely to contribute to the purposes and effectiveness of the Guidelines.


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