Pilkington China ventures, Fuyao Glass to be hit by US anti-dumping tariffs

The US will start imposing tariffs of between 3.71 pct and 124.5 pct on auto replacement glass (ARG) windshields from China next month, on top of an existing 5 pct tariff.The move comes after a ruling yesterday by the US International Trade Commission following a year-long anti-dumping investigation by the Department of Commerce.Canada has also recently started anti-dumping investigations into ARG windshield imports from China.According to the US DOC, China exported 1.8 mln ARG windshields to the US last year worth 52.4 mln usd.Industry sources said Fuyao probably accounts for around 1 mln units, with another company, Shenzhen Xinyi, accounting for another 450,000 and Pilkington ventures around 100,000.Pilkington's China country manager Richard Holt told AFX-ASIA the company is disappointed by the US ruling, and may consider appealing against the tariffs when it is allowed to do so next year."Pilkington is disappointed in the result as it affects our four companies, since the US did not investigate our companies' exports in detail."

Cao Dewang, president of Fuyao Glass, the largest exporter of ARG windshields to the US, told AFX-ASIA he was angry and will appeal against the decision.

"We will appeal against the decision. The investigation carried by the US was not fair and if it had been we would have won and would not be facing these tariffs."

Pilkington's Holt said he does not expect the tariffs to have much impact on Pilkington's overall operations in China.

"This ruling only affects one specific product category that forms only a small part of our exports from our four Chinese plants. So the impact overall on our business in China is expected to be small."

The US DOC did not carry out a detailed investigation of Pilkington's ARG exports, but has imposed anti-dumping tariffs of 9.84 pct on three of its companies in Changchun, Guilin and Wuhan.

Its Shanghai B-share listed venture, Shanghai Yaohua Pilkington, which did not export products to the US during the period under investigation, will be hit by tariffs of 124.5 pct, the amount set by the DOC for companies not specifically mentioned in its ruling.

Fuyao Glass will face tariffs of 11.8 pct on its products.

Cao said last year export sales account for 50 pct of the company's total revenue and exports of ARG windshields to the US account for 60 pct of total exports.

However, he said he does not believe the tariffs will have a significant impact on the company this year, because exports can be switched to other countries including Europe and Japan.