(BRUSSELS) - The European Union's top competition regulator announced on Friday that it had launched action against a number of industrial chemicals suppliers accusing them of operating a cartel.

The regulator, the European Commission, said it "sent a statement of objections to a number of companies active in the supply of calcium carbide and magnesium powder, concerning their alleged participation in a cartel."

A state of objections is the first step in EU anti-trust proceedings.

Calcium carbide is a compound used to make acetylene gas, a common industrial gas used in metal work. It is also used as a dehydrating agent and in the manufacture of graphite and hydrogen.

Both it and magnesium powder can be used to boost the quality of steel.

The companies concerned were not named. They can now set out their defence in writing or request an oral hearing to put forward their case. The commission would then decide whether the conduct contravened EU anti-trust rules.

In January 2007, EU regulators raided the offices of calcium carbide suppliers in Austria, Germany, Slovakia and Slovenia.

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