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China: Row rumbles on over dumping duty on Chinese glass fibre

China: Row rumbles on over dumping duty on Chinese glass fibre

Write: Gilberta [2011-05-20]
p>The European Composites Industry Association has restated its fears of damage to European composites producers from raised import duty on continuous filament glass fibre products from China. The duty 43 6 per cent is being imposed as a punitive measure by the EU Member States Anti-dumping Committee even though, says EuCIA, there was a majority against its imposition.

The vote on August 26 to impose the duty followed a complaint at the end of 2009 by eight members of the European glass fibre producers association, APFE, that the sale of Chinese glass fibre products in Europe constituted dumping. Reaction to the complaint from a number of European associations including the EuCIA and PlasticsEurope was that the complaint was unjustified, and that to impose anti-dumping import duties would cause hardship to companies involved in composites production.

A form letter to the European Commission sent by members of the EuCIA said that "In our view the complaint seems unreasonable and is a reaction of the European glass fibre producers to retain their share market as result of a normal increase of global business competition. It is our assessment that imposing any measures will out pass the negative effects this measures will have on employment, ongoing and future technological developments." PlasticsEurope issued a statement in which it said it: "Sincerely believes that an anti-dumping duty on glass fibre import from China will result in additional burden for the European plastics industry to obtain EU product approvals where glass fibre imported from China will be replaced with glass fibre produced in Europe. Companies may consider relocation of production outside Europe in order to avoid such difficulties."

Nevertheless the proposal to impose the duty was voted through. In a statement issued today EuCIA says: "Based on EuCIA sources, during the meeting of the Anti-dumping Committee 12 MS (Member States) representatives opposed the imposition of provisional antidumping measures. Only 7 MS representatives voted in favour, while 8 MS abstained. Despite a clear majority against the proposal the European Commission decided to go ahead and formally impose provisional anti-dumping measures by the deadline of the 17th of September 2010."

According to EuCIA the risk to European composites and plastics processors using glass fibre products from China is considerable: "Provisional import duties will affect the business development of over 10,000 companies across Europe, mostly small and medium sized (SMEs) and an estimated 150,000 employees involved in the manufacturing of composites used in various applications from automotive & transportation, to building and construction, electronics, sport and leisure and many other segments. Composite applications are also used in renewable and energy industries contributing to overcoming EU challenges and keeping Europe competitive."

It added: "This unprecedented and unfair result will lead to significant job cuts within the sector and related industries, and decreased competitiveness of the EU users of glass fibre as the latter will not be able to absorb such exorbitant duties."


China Chemical Weekly: http://news.chemnet.com/en/detail-1411716.html