Corobrik and five other brick makers have been charged by competition authorities with price-fixing and division of markets.
This follows an investigation launched by the Competition Commission in April against Corobrik, Era Bricks, Eston Brick and Tile, De Hoop Brickfields, Clay Industry and also Kopano Brickworks into the manufacture and supply of bricks, pavers and blocks of clay and concrete.
The Durban-based manufacturer has 17 factories and 28 sales centres nationally. It also has 32 quarries across South Africa and distributes products wholesale and through retailers such as Builders Warehouse.
The commission says Corobrik entered into separate agreements with each of the other companies through which they agreed to divide the market by allocating specific products and customers in contravention of the Competition Act.
"The parties agreed that they would not supply their respective products directly to customers in competition with Corobrik," Sipho Ngwema, head of communications at the Competition Commission said on Wednesday.
Instead, they would each supply their respective products to Corobrik which would then sell directly to customers, he said.
In addition, Corobrik and Era Bricks agreed to fix prices at which they sold bricks, pavers and blocks.
Furthermore, in the event that Era Bricks had excess products, it agreed not to sell these products at prices lower than those charged by Corobrik.