Flamemaster Corp. Files Antitrust Action

Flamemaster Corp., a Sun Valley maker of sealants, adhesives and coatings used by the aircraft and aerospace industries, has filed a $16-million antitrust suit against a Chicago chemical manufacturing concern, Morton International Inc.

The suit, filed Thursday in U.S. District Court in Los Angeles, says that in 1988 Morton began negotiations to acquire Flamemaster, but those negotiations ended without an agreement. Shortly thereafter, using confidential information obtained from Flamemaster during the acquisition talks, Morton began producing the same kind of finished sealing products Flamemaster makes and selling them at prices below the cost of making the products, the suit alleges.

Morton, formerly Morton Thiokol Inc., is the sole supplier of liquid polysulfide polymer, the chief ingredient in the finished sealing compounds. The suit also alleges that Morton raised its prices on the liquid polysulfide polymer so that other manufacturers could not compete against it.

Morton spokeswoman Nancy Hobor said, “We believe the charge is without merit, and we intend to vigorously defend our case.”

In addition to the $16 million in damages, the suit seeks an injunction preventing Morton from selling the sealing products below cost.