US anti-dumping suit minimal impact on Pantech

by **Cals** Wed 03 Jul 2013, 11:39

US anti-dumping suit minimal impact on Pantech
Business & Markets 2013
Written by Kamarul Anwar of theedgemalaysia.com
Wednesday, 03 July 2013 10:07

KUALA LUMPUR: PANTECH GROUP HOLDINGS BHD [] said there will only be a minimal impact from the US International Trade Commission's decision to continue with its anti-dumping suit against makers of welded stainless steel pipes from Malaysia, Vietnam and Thailand.

In a filing with Bursa Malaysia yesterday, the steel pipe maker said that last Friday, the commission voted to continue with the anti-dumping suit initiated by the US International Trade Administration of the Department of Commerce.

"All companies from the three Southeast Asian nations that are exporting welded stainless steel pipes to the US will be subject to the anti-dumping suit and Pantech group's wholly owned subsidiary, Pantech Stainless & Alloy Industries Sdn Bhd, is one of the companies that may be affected should the suit follow through," Pantech said in the filing.

The company said it anticipates the suit to have a minimal impact on its performance, at less than 3% of its revenue for the financial year ending Feb 28, 2014 (FY14).

"However, the group is proactively announcing this suit in line with our corporate governance and responsibility to inform our shareholders and customers accordingly," said Pantech.

It also said the shipping of welded stainless steel pipes to the US can continue until
October.

Pantech said it exports only 300 tonnes, or 30% of its capacity, of stainless steel pipes to the country.

"The group has also begun mitigation activities by increasing its production of stainless steel fittings by threefolds by the second half of FY14. We are already exploring potential export markets for stainless steel pipes and fittings such as South America and European countries," said Pantech.

The group added that it is working with its legal advisers on the best approach to the suit.

This article first appeared in The Edge Financial Daily, on July 3, 2013.