South Africa Faces Renewed EU Duty on Consumer-Battery Material

The European Union renewed for another five years a tariff against South Africa on a material for consumer batteries, saying Greek producer Tosoh Hellas AIC and Spain’s Cegasa Internacional SA need longer protection.

The EU reimposed the 17.1 percent duty on imports of electrolytic manganese dioxide from South Africa. The bloc introduced the levy in 2008 to punish Delta EMD Pty, South Africa’s only known exporting producer of electrolytic manganese dioxide, for allegedly having sold the material in Europe below cost, a practice known as dumping.

“The repeal of the measures would in all likelihood result in a recurrence of dumped imports from South Africa,” the 28-nation EU said in a decision today in Brussels. The renewal is the outcome of a probe that prevented the anti-dumping duty from lapsing as originally scheduled in March 2013 and will take effect after being published in the EU’s Official Journal in the coming days or weeks.

Delta EMD’s exports of electrolytic manganese dioxide to the EU “virtually ceased” after the introduction of the levy, according to the bloc. Previously, the EU estimated Delta EMD’s share of the European market at 60 percent to 70 percent.

Tosoh Hellas and Cegasa Internacional, the EU’s only producers of electrolytic manganese dioxide, are “still in a fragile and vulnerable situation,” the bloc said today.

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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