Dyno Nobel to Pay Record Fine in Price-Fixing Case : Explosives: Firm will plead guilty and pay $15 million. It says it sought to avoid expense of probe.

Dyno Nobel Inc., one of the world’s largest manufacturers of commercial explosives, agreed Wednesday to plead guilty and pay a record $15-million fine to settle criminal price-fixing charges.

The Justice Department accused the Salt Lake City manufacturer of conspiring to fix the prices of commercial explosives--including fuel-soaked ammonium nitrate--sold in Kentucky, Illinois and Indiana from late 1988 through mid-1992. The company was also accused of conspiring in the early 1990s to eliminate sales competition at three Texas quarries.

Last month, ICI Explosives U.S.A. Inc. pleaded guilty and agreed to pay a $10-million fine for its part in the same conspiracy.

Dyno Nobel, in a statement issued from its headquarters, said it had agreed to the settlement to put the matter behind it and to avoid the “cost and distraction” of a continuing government investigation.

Dyno Nobel is the American subsidiary of Dyno Industrier of Oslo. Last week, the parent company announced that it was replacing the Dyno Nobel top management team, citing poor financial performance and the distractions of the Justice Department inquiry.

Dyno Nobel said it did not condone violation of any laws and that it has taken steps to prevent future violations.

According to the Justice Department, “Dyno Nobel Inc. and its co-conspirators carried out the conspiracy by discussing and agreeing to increase prices for certain commercial explosives and agreeing upon bids or quotes to certain customers.” The government said the U.S. market for the explosives involved is approximately $1 billion a year. The mining, construction and oil and gas industries are the primary users.

In a related case, Mine Equipment & Mill Supply Inc. of Dawson Springs, Ky., which is 50% owned by Dyno Nobel, agreed to pay a $1.9-million fine for its involvement in the price conspiracy.