Fortress fell 13 percent to C$4.89 at 1:58 p.m. in Toronto after earlier dropping as much as 14 percent, the most intraday since May 14. The shares are down 39 percent this year.
China’s Ministry of Commerce, or MOFCOM, imposed a preliminary 13 percent duty on imports of dissolving pulp from producers in Canada, pending a final determination on the tariff, North Vancouver-based Fortress said today in a statement.
Fortress “is disappointed by MOFCOM’s preliminary decision, and believes that the decision represents an unsupported assessment of injury to China’s dissolving pulp market and the allegations of ‘dumping’ activities by Canadian producers,” the company said in the statement.
Fortress is considering a legal challenge and may request a public hearing, according to the statement.
Dissolving pulp is used to make products such as cigarette filters and synthetic fabrics including rayon. It’s named as such because the pulp is dissolved in chemicals before being used in manufacturing.
To contact the reporter on this story: Christopher Donville in Vancouver at firstname.lastname@example.org
To contact the editor responsible for this story: Simon Casey at email@example.com