India probes MDF exports from New Zealand

05/08/2008 12:00 - 784 Views

New Zealand exporters of medium density fibre (MDF) board are coming under the scrutiny of an Indian government anti-dumping investigation.

The All India Fibre Boards Manufacturers' Association is alleging massive dumping of plain MDF by New Zealand, China, Malaysia, Sri Lanka and Thailand, said Bruce Cullen, of the Ministry of Economic Development.

In one of the notices accompanying the association's petition -- sent to New Zealand's High Commission in India -- it said one exporter allegedly involved was Carter Holt Harvey, he said .

"They said there may be others and could you please forward this on to your authorities," Mr Cullen told NZPA.

The Indian Government had sent CHH a questionnaire to be filled in, and the ministry's trade rules and remedies group would watch that the inquiry followed international rules .

It would also be able to interpret technical trade terms for any companies which asked, Mr Cullen said.

The probe covers wood-based fibre boards normally used for modular furniture, cabinets and partitions.

The association has sought imposition of anti-dumping duty on such imports, claiming that substantial quantities of MDF boards are being imported into the country at prices that are significantly lower than the cost of production and sale price in their countries of origin.

The petition said there was no difference between the imported products and the products manufactured by Indian companies, the Economic Times in India reported.

Both were comparable in their physical and chemical properties, the manufacturing process and the technology used, function and uses, product specifications, pricing, distribution, marketing and tariff classification.

The petitioners, which include two companies, Nuchem and Shiridi Industries, claimed survival of their industry was under threat because persistent dumping had affected domestic manufacture, and cheap imports had choked sales of domestic product.

After assessing the degree and effect of dumping, the directorate will recommend how much of an anti-dumping duty to levy on any imported products found to be breaching anti-dumping rules.

The petition comes as Indian plywood firms switch to manufacturing cheaper variants such as particle boards and fibre boards, in anticipation of rising demand for mass-produced furniture by aspiring middle classes, according to Reuters.

Most Indians prefer furniture custom-made by local carpenters but as India gets richer, particularly in urban areas, demand for mass produced fancy furniture is on the rise.

"The market for organised furniture manufacturing is increasing," said Sajjan Bhajanka, president, Federation of Indian Plywood and Panel Industry (FIPPI). Local carpenters almost exclusively use plywood while modern mass-produced bedroom and sofa sets use particle board and MDF.

Market leader Greenply Industries Ltd is investing 3.7 billion rupees ($NZ117.7 million) on MDF and laminate units, while Century Plyboards (India) Ltd plans to set up two MDF units as part of its 20.5-billion-rupee investment plan over two years.

Archidply Industries Ltd is also setting up two new units for making MDF and particle boards.

 

NZPA
Thursday July 31 2008 - 06:43pm

Source: www.nbr.co.nz

 
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