Chemours and Koura face legal action over R454B
28th December 2024
USA: Chemours and Koura stand accused of anti-competitive conduct over the supply of R454B, the lower GWP refrigerant alternative to R410A.
FluoroFusion Specialty Chemicals and Dynatemp International accuse Chemours and Koura of anti-competitive conduct by abusing its “complete control” of R454B.
An A2L lower flammability blend of R32 and R1234yf, with a GWP of 466, R454B was first developed by Chemours and is sold as Opteon XL41.
Under the US AIM Act, refrigerants with a GWP of over 700, like R410A, will be banned from use in new stationary residential and light commercial air conditioning and heat pumps from January 1.
R454B has been widely adopted by US air conditioning equipment manufacturers, including Carrier, Trane, Johnson Controls and Lennox, as the refrigerant of choice to replace R410A. The plaintiffs claim that about 75% of equipment in the US has adopted R454B as the standard refrigerant for new HVACR systems.
The plaintiffs allege a horizontal group boycott with refusal to deal, exclusive dealing, and product tying. They also allege breach of contract, tortious interference with contract and other tortious and unlawful conduct intended to restrain trade and monopolise and exclude the plaintiffs from refrigerant markets in the continental United States.
The ten-count complaint filed in the US District Court for the Eastern District of North Carolina seeks damages and injunctive relief.
Based in North Carolina, FluoroFusion is a US supplier of refrigerants under the Arctic Eagle brand and also offers refrigerant recovery services. Dynatemp is a reseller of FluoroFusion products under the Dynatemp brand.
It is alleged that Chemours and Koura refuse to sell bulk R454B to the plaintiffs for resale under the plaintiffs’ brands. FluoroFusion claims that Koura broke a monthly R454B re-sale contract by delaying deliveries and then refusing to deliver unless FluoroFusion agreed to distribute the product as generic or under Koura’s brand.
The company also alleges that Koura and Chemours used delivery failures as an opportunity to target FluoroFusion and Dynatemp customers.
