S. Africa accuses RI of dumping paper
S. Africa accuses RI of dumping paper
JOHANNESBURG (Reuters): South African paper giants at the center of an investigation of unfair business practices on Tuesday shrugged off the allegations and instead accused Indonesia and Brazil of dumping paper in the country.
Sappi Ltd, and Mondi Paper Ltd are under investigation by South Africa's Competition Board.
The probe follows complaints by Michael Bunting, director of Johannesburg-based Atlantic Paper Supplies, that they were charging small businesses exorbitant prices on unfair terms, forcing his company to import photocopy paper from Brazil.
Mondi is part of the Anglo American Industrial Corp. stable while Sappi is a global supplier and manufacturer of pulp and paper.
"Sappi has evidence that Brazil and Indonesia are dumping paper in South Africa and that it is having a significant impact on the local market for cut paper," Sappi Fine Paper Managing Director Albert Lubbe told Reuters.
"The Board of Tariffs and Trade has itself indicated in the Government Gazette last week that there was enough evidence to justify an investigation of alleged dumping."
Similar views were echoed by Mondi Paper General Manager John Barton, who said that local production of uncoated wood-free papers, including photocopy paper, was more than adequate to meet South Africa's needs.
"These products are often imported at dumped prices. The local industry has a current application with the Board of Tariffs and Trade for a dumping investigation," he said.
Earlier, Competition Board Chairman Pierre Brookes confirmed to Reuters that an investigation was under way and said a report was about to be finalized.
"We have carried an investigation into the two companies and we have a report which is about to be finalized," he said.
Atlantic's Bunting alleged that both Sappi and Mondi were using the anti-dumping action to further their discriminatory practices.
However, Mondi's Barton said his company would supply paper to any company on the same prevailing conditions and terms to its South African customers and merchants.
"Taking into account volumes, product range and the financial risk involved, we are more than happy to do so and have already conveyed this to Atlantic Paper Suppliers," he said.
"Major paper distributors and merchants belong to the Association of Paper Distributors, which subscribes to a code of ethics to ensure that all papers are imported into South Africa under the correct code and that appropriate duties, including VAT (value-added tax) are paid," Barton said.