PETALING JAYA (June 12, 2013): Tin can manufacturers are appealing to the Ministry of International Trade and Industry (Miti) to disregard the recent petition made by Perusahaan SadurTimah Malaysia Bhd (Perstima), saying the move is an attempt to perpetuate the tinplate producer's monopoly in Malaysia.

The Malaysian Tin Can Manufacturers' Association's (MTCMA) appeal comes more than a week before the ministry is due to announce findings of an anti-dumping investigation into tinplate imports from South Korea and China.

Perstima had in February this year lodged a petition for anti-dumping on imported tinplates from the two countries and Miti had initiated an investigation on this matter, which is expected to be concluded by June 19.

There is an option for the ministry to extend the deadline should the results of its investigation thus far proven inconclusive.

MTCMA president Datuk Anthony See Teow Guan (pix), who is also executive director and general manager of KianJoo Can Factory Bhd – the country's largest tin can maker, said should the government impose anti-dumping duties on imports of tinplates from China and South Korea, local tin can makers will have no choice but to pass the cost increase to consumers.

"We will have no choice but to pass this increasing cost through increasing the price of our products, which in turn could cause a 5 sen to 10 sen increase throughout the product supply chain," he told a press conference here yesterday.

Already, tinplates imported into the country are subject to a 5% duty.

See also said about 30% of the requirements of tin can makers are supplied by imports from South Korea and China, while Perstima supplies the remainder. Local tin makers require about 120,000 tonnes of tinplate a year.

MTCMA, which represents almost all of the tin can makers in the country, also threatened a boycott of tinplates from Perstima or to take legal action against the company should Miti go-ahead to impose anti-dumping duties on imports from China and South Korea.

See said the association is even in talks with several Chinese parties to set up a tinplate plant in Malaysia in retaliation to the petition by Perstima.

"We have not made up our mind yet. We should start one (a tinplate plant) if they proceed (to impose anti-dumping duties on imports from China and South Korea)," he said.

Officials from Perstima did not return calls requesting comment.

See also questioned the need to "protect" a largely foreign-owned company like Perstima.

According to Perstima's 2012 annual report, the company is 67.57% held by four companies – Versatile SdnBhd, JFE Shoji Trade Corp, Daiwa Capital Markets Singapore Ltd and Mitsui & Co Ltd.

Another of MTCMA's arguments is that Perstima is non-competitive, pricing its tin plates at least 10% higher than international market prices which are currently trading at US$1,100 to US$1,200 per tonne.

MTCMA attributed this to Perstima's purchases of almost all their raw materials from its Japanese shareholders – JFE Steel Corp and Nippon Steel, even though it can source cheaper raw materials from other countries like China and South Korea.

"Perstima will not purchase from other cheaper sources as they are obligated in the joint venture agreement to support its parent company," MTCMA said in a statement released at its press conference here yesterday.

See said attempts to raise the issue of Perstima's monopoly have fallen on deaf ears, necessitating it to go to the media with its concerns.