China glassmaker hit by dumping charges sets up HK plant

"The move is part of our global strategy to increase the number of our production origins," said Simon Li, spokesman for Xinyi Group (Glass) Co Ltd, which owns the biggest float glass workshop in mainland China and exports 70 percent of its goods.

"A second production origin can give our clients a choice to avoid possible interruptions in supply while we deal with anti-dumping measures," he added.

Last year Xinyi and several mainland China automobile glass makers lost an anti-dumping suit in the United States, which started imposing punitive tariffs of 3.71 percent to 124.5 percent on replacement glass windshields from China from last April.

The anti-dumping petition was filed by U.S. autoglass makers Apogee Enterprises Inc APOG.O , PPG Industries Inc PPG.N and privately held Safelite Glass Corp.

"The tariff increases our costs and creates uncertainties," Li said, adding that the duty was subject to change each year.

Xinyi and three other Chinese windshield makers also battled dumping charges by foreign competitors in Canada last year but won the case.

Under international trade rules, dumping occurs when a foreign firm sells products in a country at a lower price than in its own country.