Regina steel firm wins dumping case

01/04/2010 12:00 - 544 Views

Evraz Inc. has won its case against illegally "dumped" oil country tubular goods (OCTG) by China, which was launched nearly a year ago.

The Canadian International Trade Tribunal ruled this week the dumping and subsidizing of OCTG casing and tubing by China had "caused injury to the domestic industry."

Anti-dumping and countervailing duties will be collected by the Canada Border Services Agency (CBSA) on these goods, retroactive to Nov. 23.

Another case of alleged dumping of OCTG by China was thrown out by the tribunal. The tribunal also excluded certain products from its injury finding on casing and tubing.

The complainants in the case were Evraz Inc. NA Canada of Regina, Lakeside Steel Corp. of Welland, Ont., and Tenaris Canada of Calgary.

Greg Maindonald, general manager of Evraz Regina Steel, which operates the company's steel mill and tubular operations in Regina, said the decision was welcome, although it comes too late to prevent the damage done to the domestic industry.

"Obviously, the company is happy with the decision," Maindonald said. "The problem is we've had some of our pipe mills shut down for more than a year. Some of them are not up fully yet because of the inventory the Chinese threw into Western Canada."

Maindonald said the ruling is retroactive to Nov. 23 when the preliminary ruling was made by the tribunal against the dumped Chinese OCTG products. "Most of the damage happened in the last quarter of 2008 and first quarter of 2009. That put our people out of work for a long time."

Fortunately, with the oilpatch returning to life and drilling resuming in Western Canada, most of the company's facilities are at or nearing full production, he added.

"Everybody's still not at work, but things are turning around. We're hoping, going forward, to be able to compete on a fair basis."

Maindonald said the Regina steel mill is "going full out," producing steel for the company's tubular facilities in Regina and Alberta. "Red Deer and Calgary (pipe mills) are back running. Camrose (Alberta) mill is going to be doing a few orders end of March, early April."

And Regina's spiral pipe mill, 24-inch pipe mill and two-inch pipe mill are all producing at varying degrees of capacity. Maindonald estimated Evraz's total Western Canadian workforce to be around 1,500, compared with 1,000 a year ago.

The tribunal, an independent quasi-judicial body that reports to Parliament through the Minister of Finance, will issue the reasons for its findings on April 7.

Saskatchewan News Network; Regina Leader-PostMarch 26, 2010

Source: www.thestarphoenix.com
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