Local stainless steel foundries were calm on Tuesday in the face of a recent announcement by the EU that it would launch a probe into Taiwan's alleged dumping of stainless cold-rolled steel plates.

The European Commission, the EU's executive branch, posted a bulletin on Friday announcing its intention to launch an investigation into the alleged dumping of cold-rolled steel plates by Taiwan, China and South Korea, the Bureau of Foreign Trade said in a news release.

The anti-dumping measure was adopted after European steelmakers filed a complaint over exports by their competitors from China, South Korea and Taiwan.

Under the complaint, it is claimed that Taiwan's exports of steel products to the EU grew to 22.94 percent of total EU imports of this kind by last September, up from 18.89 percent in 2006 and 17.51 percent in 2005, according to the news release.

The bureau urged local firms, which have been targeted by the probe, to cooperate with the investigation.

However, Kaohsiung-based Tang Eng Iron Works Co, one of the nation's major steel foundries, said the probe would not threaten its operations even if the EU decides to levy punishing tariffs on Taiwan's steel products because the EU had never been one of its major markets.

Yunlin County-based Froch Enterprise Co, one of the world's leading manufacturers of stainless steel tubes and pipes, and Taipei County-based Hsin Kuang Steel Co, said that the probe would not pose a threat to their exports.

The firms said their exports to Europe have been small because EU demand for steel products differs from other markets in terms of type and size, company executives said.

They also said that they have a wealth of experience handling anti-dumping accusations and see little reason for concern.

STAFF WRITER, WITH CNA

Thursday, Feb 07, 2008, Page 6

                                        Source: www.taipeitimes.com