British manufacturers have warned that the proposed UK anti-dumping duties on Chinese aluminum extrusions are too low and risk causing a flood of imports, factory closures and job losses.

In its first new post-Brexit investigation, the Trade Remedies Authority, an independent government advisory body, recommended tariffs on aluminum extrusions from a group of three major Chinese exporters that together account for 70 percent of the country’s exports to China. the UK at 10.1 percent.

Aluminum extrusion is a process of heating and forming alloyed material into shapes used in the automotive, infrastructure and construction industries. The EU has set tariffs on the products at 22.1 percent, while the US has set them at 33.3 percent.

Hydro Aluminum UK, the largest producer of aluminum extrusions in the UK, accounting for a quarter of the market, has warned that if the TRA’s recommendation is passed, it would be forced to close its factories, which employ nearly 1,000 people. and supply the electric black cabs of London. and Jaguar Land Rover.

“It’s not just a few percentage points difference, it’s half the EU level. The import duties will be so low that they will simply be absorbed by the Chinese exporters,” warned Roger Ablett, director of extrusions at Hydro Aluminum UK.

Chinese aluminum producers receive significant government support, with a 2019 OECD report showing that 85 percent of subsidies in the global aluminum industry went to five Chinese companies.

Ablett warned that lower rates in the UK on top of a sharp rise in energy bills would lead to plant closures, continuing the trend of consolidation and production shutdowns in the country.

“If these latest proposed measures are at the level they are now, then it’s clear what will happen — that history of closure will continue,” he said. “It could be complete destruction.”

He added that closures could also cause the UK to re-export Chinese extrusions to EU countries, putting Britain at risk of a trade dispute with Brussels.

Small UK-based producers supplying a further 25 per cent of the country’s approximately 190,000 tonnes of aluminum extrusion demand say they are also at risk under the proposed tax.

Roger Hartshorn, director of Garner Aluminum Extrusions, which employs 155 people, said his company would have a hard time competing with Chinese producers unless anti-dumping tariffs are raised to match those of other countries.

“In reality, if they remove the borders or open the floodgates, we will be exposed and the UK will lose its internal supply chain for aluminum products,” he warned.

The TRA has had a faltering start since its creation in 2021. It was forced to change its stance on anti-dumping duties on steel from China in September following outcry from domestic industry after it initially suggested lifting measures against imports.

The authority began its investigation into the Chinese companies last year and concluded in May that it had found “clear evidence of dumping and injury” for British producers. Recommended rates for aluminum extrusions range from 7.3 percent to 29.1 percent, depending on the manufacturer.

A TRA spokesperson said its recommendations were based on evidence relating to “only the UK market”, which differs from the EU and US in several respects. They added that provisional measures had been taken in the meantime in order to avoid further injury to UK producers.

A final advice will be presented to the Secretary of State for International Trade in the coming weeks.

Source: The New York Daily Paper