Silcosil, which makes RTA, wood and metal office and school furniture, brought a case against Masisa and its furniture parts and assembly offshoot Masisa Componentes SpA at Chile’s Court of Defence of Free Competition (TDLC), demanding fines of US$32m against the firms.
Silcosil, based in Paine in the Santiago region, alleges Masisa Componentes is trying to drive it out of business by "systematically and permanently" selling its products below production cost despite making heavy losses and building up debts.
The furniture maker accuses Masisa group of indulging in "predatory practices", "margin strangulation" and using cross company subsidies from Masisa (group) to its loss-making subsidiary to keep it in the market in spite of its mounting debt.
Silcosil, which has two plants processing 21,500m3/year of panels, also claims Masisa infringed the copyright of designs of furniture products it has developed.
Already, following a request from the plaintiff, the court is reported to have ordered Masisa Componentes to exhibit its accounts and financial records for 2014.
