Brazilian integrated steelmaker Companhia Siderurgica Nacional (CSN) is charging two distributors in the country with fraudulently selling the company's steel, a spokesman told S&P Global Platts on Thursday.
"Fake companies created websites where they supposedly were distributing our products -- using CSN's name and logo," a the spokesman said. "Payment invoices were sent to these buyers, but products were never delivered."
These customers then began calling CSN, protesting the deliveries, he added.
According to the spokesman, the target of the fake companies were customers buying very small quantities, "at volumes CSN doesn't commercialize," the spokesman explained.
On its website, CSN now displays an alert against the fraudulent companies, namely Esfera Distribuidora and Nacional Siderurgica.
"Clearly, the latter is a reference to CSN's brand to confuse whoever access it," the spokesman added.
Several unsuccessful attempts to contact the distribution companies.
According to CSN, this alleged fraud has been happening for about three months.
"CSN has already filed an occurrence bulletin on the fraud because it was using the name and symbol of CSN," the spokesman said.
In a statement published on its website, CSN said it "bases its relationship with its clients on the highest standards of ethics and transparency, and it repudiates the behavior of fraudsters and that it has no ties with such companies."
