China Faces Five-Year European Union Tariffs on Glass Fibers

The European Union imposed five-year tariffs on glass fibers from China to help EU manufacturers including a French unit of Owens Corning (OC) Inc. and a Dutch subsidiary of PPG Industries Inc. (PPG) counter cheaper imports.

The duties as high as 13.8 percent punish Chinese exporters of chopped glass-fiber strands, glass-fiber rovings and mats made of glass-fiber filaments for selling them in the 27-nation EU below cost, a practice known as dumping. These goods result in glass-fiber reinforced plastics that are used in the automotive, electronics, construction and aerospace industries.

EU producers such as Owens Corning France and PPG Industries BV in the Netherlands suffered “material injury” as a result of dumped imports from China, the EU said in a decision today in Brussels. The five-year levies follow provisional measures introduced in September and will take effect after being published in the EU Official Journal by March 17.

Chinese exporters including Jushi Group and New Changhai Group increased their combined share of the EU market for the glass fibers covered by the duties to 14.2 percent in the 12 months through September 2009 from 7.9 percent in 2006, according to the bloc.

The provisional anti-dumping duties are as high as 43.6 percent, and the EU will refund importers the difference with the “definitive” five-year rates. The provisional measures are also wider because they extend to yarns of glass-fiber filaments that are being excluded under the five-year levies.

The definitive duties will be 13.8 percent against all Chinese exporters except New Changhai Group, which will face a 7.3 percent rate. The provisional levy against the company -- made up of Changzhou New Changhai Fiberglass Co. and Jiangsu Changhai Composite Materials Holding Co. -- is 8.5 percent.

To contact the reporter on this story: Jonathan Stearns in Strasbourg, France, at jstearns2@bloomberg.net

To contact the editor responsible for this story: James Hertling at jhertling@bloomberg.net

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