Kone to appeal $187 million fine from EU

HELSINKI, Finland --Escalator and elevator maker Kone Corp. said Friday it will appeal a euro142 million (US$187 million) fine by European Union regulators for anticompetitive practices.

"The fine will be recognized as cost in the first quarter of the financial year," Kone said in a brief statement, but gave no other details.

Last month, the EU announced its largest-ever price-fixing fine of euro992 million (US$1.3 billion) on five elevator makers, including Kone, for operating cartels for the installation and maintenance of lifts and escalators in Germany, Belgium, Luxembourg and the Netherlands.

The others were Hartford, Connecticut-based United Technologies Corp., the corporate parent of Otis Elevator; German conglomerate ThyssenKrupp AG; Switzerland's Schindler Holding AG and subsidiaries of Japan's Mitsubishi Elevator Europe BV.

EU Competition Commissioner Neelie Kroes said at the time that the costs of buildings and hospitals were "artificially bloated by these cartels."

The EU conducted surprise raids against the companies in January 2004 after regulators were tipped off.

Kone, based in Espoo just outside the Finnish capital, employs 29,000 people and has 800 service centers in 50 countries.

Last year, revenue amounted to euro3.6 billion (US$4.7 billion), from euro3.2 billion a year earlier. Kone's net profit more than doubled in 2006 to euro234 million (US$308 million).

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On the Net:

Kone: http://www.konecorp.com