19 September 2010
19 September 2010
The decision of the European Commission to impose a provisional anti-dumping duty of up to 43,6 % on glass fibre imports from China was published this week in the Official Journal of the European Union.
This decision follows the first nine months of the investigation into whether imports of glass fibre reinforcements from China violated the EU anti-dumping rules. The provisional duty will apply until a possible decision on definitive measures will be taken by the Member States of the European Union.
Since 2004 the European Industry experienced a massive increase in the market share held by Chinese producers and suffered from significant price undercutting. In December 2009 the European Commission started to investigate allegations of dumping of glass fibre rovings, chopped strands, yarns and mats after these practices were brought to its attention by GlassFibreEurope, the European glass fibre producers’ association.
The viewpoint of GlassFibreEurope is that the increase in market share and price undercutting is seriously damaging profitability, ability to invest and employment in the sector. “We are appreciative of the European Commission’s very thorough investigation and for imposing the provisional duties,” said Dr Axel Jorns, Secretary General of GlassFibreEurope. Glass fibre reinforcements are a critical input material for Composites, which play an increasingly important part in our lives – in such applications as wind turbine blades, car components and marine boat hulls – but are a minor cost item in the finished goods. The European manufacturing industry has and will have capacity to meet the market’s demands and will continue to ensure that the European Composites industry can continue to grow through innovation and competitiveness” concluded Dr Jorns.
However, the viewpoint of EuCIA, the European Composite Industries Association, is that the introduction of anti-dumping duty will lead to significant job cuts within the sector and related industries, and decreased competitiveness of the EU users of glass fibre, affecting 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.
Volker Fritz, EuCIA President noted: “We would like to thank our members and industry for the response we received so far and for the mobilization of our forces against this case. Our industry needs to continue to explain and show the implications of import duties on business and employment during the next months. It is crucial that this message is sent at national and European level”.
The provisional measures are expected to become effective as from the 17th of September.