Fiber makers play down EU anti dumping duty

Fiber makers play down EU anti dumping duty

JAKARTA (JP): Anti dumping duties imposed by the European
Commission will not really hurt Indonesian fiber makers as the
domestic market is absorbing much of the nation's fiber output,
two major textile producers said on Thursday.

Corporate Secretary of publicly listed PT Indo-Rama
Synthetics, Vs Baldwa, said that the company sold only a small
amount of polyester staple fiber products to the European market.

"The effects of the anti-dumping duty is not that significant
for us," Baldwa said, but declined to mention the company's
export value to Europe.

Meanwhile, publicly listed PT Teijin Indonesia Fiber
Corporation (Tifico) expressed similar optimism, saying that the
European market made up only a small share of its polyester
stable fiber sales.

"Our fiber sales to Europe are insignificant compared to sales
in the domestic market," said Elinda Firga, a management staffer
directing the company's stance against anti-dumping charges.

She said that increasing fiber demand in the domestic market
even required Tifico to import fiber from its sister company in
Thailand.

The European Commission on Monday issued anti-dumping duties
on Indonesian fiber producers, ranging between 5.2 and 20.8
percent, following investigations in response to complaints by EU
fiber producers.

The commission imposed the same duties, ranging between 13.6
and 35.3 percent, on Australian, Thailand and Taiwan fiber
makers.

Baldwa said that most of Indo-Rama's polyester staple fiber
products were absorbed by the domestic market, citing as an
example that out of 60,000 tons of production, just 40 tons were
sent to Europe.

The European Commission imposed anti-dumping duty of 5.2
percent on Indo-Rama fibers, which according to Baldwa was the
smallest rate compared to those imposed on other Indonesian and
foreign fiber producers in Australia, Thailand and Taiwan.

Baldwa said Indo-Rama received a lower anti-dumping duty
because the company set the highest price on its products. "There
is actually an opportunity for us to continue our export to
Europe."

Meanwhile, Elinda said the European Commission imposed 13.7
percent anti-dumping duty on the Tifico's fiber, which according
to her would effectively shut its European market.

"Moreover, we sell our fibers to trading houses who in turn
export them to Europe; so our products aren't cheap," Elinda
said.

She said the company had yet to obtain a written statement
from the European Commission, elaborating their decision.

According to her, Tifico had been very cooperative during the
one year investigation period, saying that Indonesian companies
that failed to follow the proceedings were charged 20.8 percent.

Both Baldwa and Elinda said the imposition of anti-dumping
surcharges by the European Commission was certainly undesirable.

Baldwa said the anti-dumping decision by the commission was
more based on their efforts to save EU's fiber industry from
bankruptcy rather than upholding fair trading principles.

"They were heading towards bankruptcy because they're not
competitive," he said and suggested the decision went against the
spirit of free trade as championed by the World Trade
Organization. (03)